Forex: AUD/USD Technical Analysis – Eyeing Support Below 0.90
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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 is edging lower as expected after prices put in a Shooting Star candlestick at resistance in the 0.9085-98 area, marked by the January 13 high and the 50% Fibonacci expansion. A daily close below support at 0.9048, the 38.2% Fibonacci expansion, exposes the 23.6% level at 0.8987. Alternatively, a reversal above resistance aims for the 61.8% expansion at 0.9147.
Entering short seems premature at this point absent confirmation of a breakdown on a daily closing basis. Needless to say, evidence supporting a long position is hard to come by at this point. On balance, we will remain flat for now until a viable selling opportunity presents itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com