Forex: AUD/USD Technical Analysis – Aussie Soars to 5-Month High
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- AUD/USD Technical Strategy: Flat
- Support: 0.9303 (23.6% Fib exp.), 0.9205 (Apr 3 low)
- Resistance: 0.9363 (38.2% Fib exp.), 0.9412 (50% Fib exp.)
The Australian Dollar continued to push higher against its US counterpart, with buyers finally managing to secure a foothold above the 0.93 figure. The pair is testing resistance at 0.9363, the 38.2% Fibonacci expansion, with a break above this barrier targeting the 50% level at 0.9412. Alternatively, a turn back below the 23.6% Fib at 0.9303 exposes the April 3 low at 0.9203.
Risk/reward considerations argue against entering long with prices trading in close proximity to relevant resistance. On the other hand, taking up the short side looks premature absent a defined bearish reversal signal. With that in mind, we will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com