Strategy: Flat
AUDUSD is retesting resistance-turned-support at the top of a previously broken falling channel, with a Doji candlestick and subsequent rebound bringing the pair to challenge the 38.2% Fibonacci retracement at 1.0320. A break above this barrier exposes the 50% Fib at 1.0403, while near-term support remains at 1.0110. Overall, the move higher appears corrective as the double top at 1.0763 plays out, but positioning doesn’t offer enough to enter short with conviction at current levels. As such, we will opt to stand aside for now.
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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