Forex: AUD/USD Technical Analysis – A Reversal Finally at Hand?
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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 is moving higher as expected after putting in a bullish Piercing Line candlestick pattern. Familiar resistance in the 0.8819-58 area (marked by pivotal swing lows dating back to August 2013 and the 14.6% Fibonacci expansion) continues to hold however. A daily close above this boundary would help alleviate immediate downside pressure, but a push through trend line resistance capping gains since early December is needed to set an outright positive tone.
In the meantime, an actionable trade setup is absent and we will remain on the sidelines. Breaking above 0.8858 initially exposes 0.8918 (23.6% Fib retracement), while near-term support remains at 0.8659 (January 24 low).
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Daily Chart - Created Using FXCM Marketscope 2.0
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