AUD/USD Technical Analysis – Attempting to Turn Downward
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- AUD/USD Technical Strategy: Flat
- Support: 0.9343 (14.6% Fib ret.), 0.9271 (23.6% Fib ret.)
- Resistance: 0.9460 (Apr 10 high)
The Australian Dollar turned lower against its US counterpartas expected after prices showed a Shooting Star candlestick below the 0.95 figure. The pair is now testing support at 0.9343, the 14.6% Fibonacci retracement, with a break downward on a daily closing basis initially exposing the 23.6% level at 0.9271. Near-term resistance is at 0.9460, the April 10 high.
Risk/reward considerations argue against entering a short position with prices sitting squarely at near-term support. On the other hand, entering long appears premature absent a defined bullish reversal signal. We will continue to monitor developments from the sidelines 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.