Forex: AUD/USD Technical Analysis – New Monthly High Set
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- AUD/USD Technical Strategy: Flat
- Support: 0.9085-0.9104 (Jan 13 high, 38.2% Fib exp.), 0.9034 (23.6% Fib exp.)
- Resistance: 0.9159 (50% Fib exp.), 0.9215 (61.8% Fib exp.)
The Australian Dollar’s expected recovery against is US counterpart appears poised to continue after prices cleared resistance in the 0.9085-0.9104 area, marked by the 38.2% Fib and the January 13 high. The bulls now aim to challenge the 50% level at 0.9159, with a further push above that eyeing the 61.8% Fib at 0.9215. Alternatively, a reversal back below 0.9085 aims for the 23.6% expansion at 0.9034.
A 20-day ATR reading of 74 pips suggests a pullback all the way back to 0.9085 is needed to produce acceptable risk/reward parameters for a long position targeting 0.9159 (given a stop-loss triggered on a daily closing basis, as is the case with our strategy). That suggests the current range is too narrow to justify a trade. With that in mind, 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.