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- AUD/USD Technical Strategy: Flat
- Support: 0.9314 (Apr 21 low), 0.9213 (trend line)
- Resistance: 0.9424 (23.6% Fib exp.), 0.9460 (Apr 10 high), 0.9493 (38.2% Fib exp.)
The Australian Dollar declined as expected against US namesake but buyers are attempting to stage a recovery above the 0.93 figure. Near-term resistance is at 0.9424, the 23.6% Fibonacci expansion, with a break above that exposing the April 10 high at 0.9460 and the 38.2% level at 0.9493. Initial support is at 0.9314, the April 21 low. A reversal below this barrier targets a rising trend line set from late January, now at 0.9213.
It is unclear at this point whether yesterday’s upswing represents the start rising trend resumption or a correction preceding further selling. We remain on the sidelines for now, waiting for prices to provide greater confirmation of directional conviction before entering a trade.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com