To receive Ilya’s analysis directly via email, please SIGN UP HERE
Talking Points:
- AUD/USD Technical Strategy: Flat
- Support: 0.7417, 0.7283, 0.7150
- Resistance:0.7499, 0.7566, 0.7632
The Australian Dollar moved lower against its US counterpart as expected after prices put in a bearish Three Inside Down candlestick pattern. Near-term support is at 0.7417, the 76.4% Fibonacci expansion, with a break below that on a daily closing basis exposing the 100% level at 0.7283. Alternatively, a move above the 61.8% Fib at 0.7499 opens the door for a challenge of the 50% expansion at 0.7566.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
— Written by Ilya Spivak, Currency Strategist for DailyFX.com