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- AUD/USD Technical Strategy: Flat
- Support: 0.9318 (14.6% Fib exp.), 0.9277 (trend line)
- Resistance: 0.9390 (23.6% Fib exp.), 0.9460-0.9507 (Apr 10 high, 38.2% Fib exp.)
The Australian Dollar launched a sharp recovery against its US counterpart having found support at a rising trend line set from late January. A break above the 14.6% Fibonacci expansion at 0.9318 has exposed the 23.6% level at 0.9390. A further push beyond that targets the 0.9460-9507 area, marked by the April 10 high and the 38.2% Fib. Alternatively, a reversal back below 0.9318 clears the way for another test of the trend line, now at 0.9277.
The available trading range is too narrow to justify a position at current levels from a risk/reward perspective given volatility as implied by 20-day ATR. With that in mind, we will remain on the sidelines for the time being.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com