Forex: AUD/USD Technical Analysis – Five-Day Win Streak Broken
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- AUD/USD Technical Strategy: Flat
- Support: 0.9233 (50% Fib exp.), 0.9177 (38.2% Fib exp.)
- Resistance: 0.9290 (61.8% Fib exp.), 0.9360 (76.4% Fib exp.)
The Australian Dollar put in a Shooting Star candlestick after five consecutive advances, hinting bullish momentum maybe ebbing and warning of a turn lower against the US Dollar. Near-term support is at 0.9233, the 50% Fibonacci expansion, with a break below that exposing the 38.2% level at 0.9177. Alternatively, a move through resistance at 0.9290 – the 61.8% Fib – targets the 76.4% expansion at 0.9360.
A Shooting Star candle is a sign of indecision and does not offer an actionable trade signal by itself. Furthermore, prices are too close to near-term support to justify entering short from a risk/reward perspective. We will continue to stand aside for now, waiting for confirmation of reversal to look for entry opportunities.
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.