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- AUD/USD Technical Strategy: Flat
- Support: 0.9363 (38.2% Fib exp.), 0.9303 (23.6% Fib exp.)
- Resistance: 0.9412 (50% Fib exp.), 0.9461 (61.8% Fib exp.)
The Australian Dollar put in a Shooting Star candlestick below resistance at 0.9412, the 50% Fibonacci expansion, warning of indecision and hinting a turn lower may be ahead. A break below support at 0.9363, the 38.2% level, targets the 23.6% Fib at 0.9303. Alternatively, a push above resistance on a daily closing basis aims forthe 61.8% Fib at 0.9461.
The available range between near-term support and resistance is too narrow to make for an attractive trade setup for a strategy using a stop-loss activated on a daily closing basis (as is the case for our approach) given a 20-day ATR reading of 70. We will remain on the flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com