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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support: 0.9209 (14.6% Fib ret.), 0.9132-51 (Mar 7 high, 23.6% Fib ret.)
- Resistance: 0.9303 (Apr 1 high)
The Australian Dollar may be readying to reverse lower against its US counterpart after putting in a Shooting Star candlestick near the 0.93 figure. Negative RSI divergence bolsters the case for a downside scenario. A daily close below support at 0.9209, the 14.6% Fibonacci retracement, exposes the 0.9132-51 are marked by the 23.6% level and the March 7 high. Near-term resistance is at 0.9303, the April 1 high.
Prices are too close to relevant support to justify entering short from a risk/reward perspective. On the other hand, the absence of a bullish reversal signal hints it is premature to take up the long side. We will continue to stand aside for now.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com