AUD/USD Technical Analysis – Reversal Confirmation Pending
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- AUD/USD Technical Strategy: Flat
- Support: 0.9380 (trend line), 0.9271 (23.6% Fib ret.)
- Resistance: 0.9460 (Apr 10 high)
The Australian Dollar turned lower as expected against its US namesake after prices put in a Shooting Star candlestick below the 0.95 figure. Sellers are testing below rising trend line support set from mid-March, with a break lower confirmed on a daily closing basis exposing the 23.6% Fibonacci retracement at 0.9271. Alternatively, a move back above the trend line (now at 0.9380) aims for the April 10 high at 0.9460.
Prices are too close to relevant support to justify a short trade form a risk/reward perspective. We will continue to stand aside for now, looking for a more attractive entry to present itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com