Forex: AUD/USD Technical Analysis – Resistance Above 0.90 Eyed
To receive Ilya's analysis directly via email, please SIGN UP HERE
- AUD/USD Technical Strategy: Flat
- Support: 0.8988 (trend line), 0.8918 (23.6% Fib ret.)
- Resistance: 0.9079 (38.2% Fib ret.), 0.9208 (50% Fib ret.)
The Australian Dollar rose as expected having produced a bullish Piercing Line candlestick pattern. A break above falling trend line resistance set from early December 2013 has now exposed the 38.2% Fibonacci retracement at 0.9079. Pushing further above that eyes the 50% level at 0.9208. Alternatively, a turn back below the trend line (now at 0.8988) eyes the 23.6% level at 0.8918.
Risk/reward considerations argue against entering a trade at the moment. On one hand, prices are too close to resistance to justify a long position. On the other, a short trade would presume a reversal, an assumption that thus far lacks evidence. We will wait for confirmation for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.