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- AUD/USD Technical Strategy: Flat
- Support: 0.8952 (38.2% Fib ret., trend line), 0.8896 (50% Fib ret.)
- Resistance: 0.9034 (23.6% Fib exp.), 0.9085-0.9104 (Jan 13 high, 38.2% Fib exp.)
The Australian Dollar may be preparing to turn higher against its US counterpart after prices put in a Hammer candlestick near support at 0.8952, the intersection of the 38.2% Fibonacci retracement and a rising trend line set from late January. A break above near-term resistance at 0.9035, the 23.6% Fib expansion, exposes the 0.9085-0.9104 area marked by the 38.2% level and the January 13 high. Alternatively, a turn below support eyes the 50% retracement at 0.8896.
A Hammer candle is a sign of indecision and doesn’t amount to a reversal signal without confirmation. With that in mind, we will wait for greater clarity before entering a long position.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com