Forex: AUD/USD Technical Analysis – Topping Out Below 0.91?
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- 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.)
The Australian Dollar may be losing upside momentum after last week’s surge and preparing to reverse lower against its US counterpart after prices produced a Shooting Star candlestick. A break below the 38.2% Fibonacci expansion at 0.9048 on a daily closing basis exposes the 23.6% level at 0.8987. Alternatively, a reversal through resistance in the 9085-98 area marked by the 50% Fib and the January 13 high targets the 61.8% expansion at 0.9147.
A Shooting Star is not an actionable trade signal in and of itself and confirmation is required on a break of support as a precondition before a viable trade setup can be identified. We will continue to stand aside 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.