Strategy: Pending Short
AUDUSD is testing resistance at 1.0207, the intersection of the 50% Fibonacci retracement level and a falling trend line set from the October 27 swing high, with candlestick positioning hinting a turn lower is ahead. With that in mind, congested positioning skews risk/reward considerations away from entering a trade at current levels and we will remain on the sidelines for now. Initial support lines up at 1.0078, the 38.2% Fib.
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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