Forex: AUD/USD Technical Analysis – Buyers Unable Find Momentum
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- AUD/USD Technical Strategy: Flat
- Support: 0.8659 (Jan 24 low)
- Resistance: 0.8819-58 (14.6% Fib exp., Aug’13 bottom), 0.8918 (23.6% Fib exp.)
The Australian Dollar edged higher as expected after putting in a bullish Piercing Line candlestick pattern but follow-through has left much to be desired, with the move higher well-capped in the 0.8819-58 area, marked by pivotal swing lows dating back to August 2013 and the 14.6% Fibonacci expansion.
The presence of positive RSI divergence suggests downward momentum may be fading, hinting at the formation of a significant bottom ahead. Proximity to resistance argues against initiating long positions at present however. Alternatively, the absence a clear-cut selling signal argues against actively participating on the short side. On balance, this leaves us sidelined for the time being.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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