AUD/USD Technical Analysis – Testing Support Above 0.83
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- AUD/USD Technical Strategy: Flat
- Support: 0.9325 (23.6% Fib ret.), 0.9242 (38.2% Fib ret.)
- Resistance: 0.9448-60 (trend line, Apr 10 high)
The Australian Dollar declined as expected against its US counterpartafter the pair put in a Shooting Star candlestick below the 0.95 figure. The pair is now testing support at 0.9325, the 23.6% Fibonacci retracement, with a break downward on a daily closing basis initially exposing the 38.2% level at 0.9242. Near-term resistance is in the 0.9448-60 area, marked support-turned-resistance at a rising trend line set from late March and the April 10 high.
Prices are trading too close to relevant support to make a short trade attractive from a risk/reward perspective. We will continue to stand aside for now, waiting for an actionable opportunity to present itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com