Forex: AUD/USD Technical Analysis – Stop Hit on Short Position
To receive Ilya's analysis directly via email, please SIGN UP HERE
- AUD/USD Technical Strategy: Flat
- Support: 0.9048 (38.2% Fib exp.), 0.8987 (23.6% Fib exp.)
- Resistance: 0.9085-98 (Jan 13 high, 50% Fib exp.), 0.9147 (61.8% Fib exp.)
Our short AUD/USD position was narrowly stopped outon a daily close above 0.9085, the January 13 high. This barrier is reinforced by the 50% Fibonacci expansion at 0.9098. A break above the latter barrier exposes the 61.8% level at 0.9147. Alternatively, a reversal below the 38.2% Fib at 0.9048 aims for the 23.6% expansion at 0.8987.
Prices are too close to relevant resistance at this point to justify a long position on risk/reward grounds. On the other hand, attempting to re-enter short without a defined downward reversal signal seems premature. We will stand aside for now and monitor the pair for new entry opportunities.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com