Forex: AUD/USD Technical Analysis – Waiting to Enter Short Trade
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- AUD/USD Technical Strategy: Flat
- Support: 0.9132 (Mar 7 high), 0.9055 (wedge floor)
- Resistance: 0.9177 (wedge top, 38.2% Fib exp.), 0.9233 (50% Fib exp.)
The Australian Dollar advanced for a third consecutive day against its US namesake but overall positioning hints at losses ahead as prices carve out a Rising Wedge chart formation. Negative RSI divergence bolsters the case for a downside scenario. A reversal below resistance-turned-support at 0.9132, the March 7 high, exposes the wedge bottom at 0.9055. Alternatively, a move through resistance at 0.9177, marked by the wedge top and the 38.2% Fibonacci expansion, targets the 50% level 0.9233.
Confirmation of the Wedge setup requires a daily close below the pattern’s lower boundary. We will wait for this to materialize to begin looking for a viable short entry opportunity.
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.