Forex: AUD/USD Technical Analysis – Stalling Near 0.90 Figure
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- AUD/USD Technical Strategy: Flat
- Support: 0.8969 (trend line from Jan), 0.8930 (trend line from Feb)
- Resistance: 0.9034 (23.6% Fib exp.), 0.9085-0.9104 (Jan 13 high, 38.2% Fib exp.)
The Australian Dollar advanced as expected against its US counterpart after prices showed a Hammer candlestick at rising trend line support set from late January, but follow-through has been relatively limited. Continuation requires a daily close above resistance at 0.9035, the 23.6% Fibonacci expansion. This would expose the 0.9085-0.9104 area, marked by the 38.2% Fib and the January 13 high. Trend line support is now at 0.8976, with a shallower upward-sloping barrier seen at 0.8930 thereafter.
Prices are too close to relevant resistance to justify a long position from a risk/reward perspective. On the other hand, a viable reversal signal arguing in favor of a short trade is absent for the time being.We will remain on the sidelines until a more actionable setup presents itself.
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.