Forex: AUD/USD Technical Analysis – 0.90 Mark in the Crosshairs
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- AUD/USD Technical Strategy: Flat
- Support: 0.8819 (14.6% Fib ret.), 0.8659 (Jan 24 low)
- Resistance: 0.8918-27 (23.6% Fib ret., trend line), 0.9079 (38.2% Fib ret.)
The Australian Dollar rose against its US namesake as expected after showing a bullish Piercing Line candlestick pattern. Prices are testing above resistance in the 0.8918-27 area, marked by the 23.6% Fibonacci retracement and a rising trend line set from mid-December. Breaking above this boundary exposes the 38.2% level at 0.9079. Alternatively, a turn below the 14.6% Fib at 0.8819 targets the January 24 low at 0.8659.
Entering long seems premature absent confirmation of a breakout on a daily closing basis. The short side seems even less compelling, demanding a thus-far baseless assumption of an intraday reversal downward. We will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com