AUD/USD Candlestick Analysis: Key Resistance at 0.79 Figure
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AUD/USD Strategy: Flat
Aussie Dollar Begins Tentative Recovery
Critical Resistance Seen at 0.79 Figure
The Australian Dollar began to advance against its US counterpart as expected showing a pair of Spinning Top candles coupled with positive RSI divergence. Confirmation of a larger reversal requires a break above channel resistance guiding the down move from early September remains. This barrier is currently reinforced by the 14.6% Fibonacci retracementat 0.7899, with a break push upward exposing the 23.6% level at 0.8069.Alternatively, a reversal below the 38.2% Fib expansion at 0.7732 targets the 50% threshold at 0.7558.
The overall AUD/USD trend continues to look decidedly bearish. With that in mind, we will look to any on-coming gains as an opportunity to establish a short position at more attractive levels once the upswing is exhausted.
Weekly Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com