AUD/USD Technical Analysis – Waiting for Direction Cues
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- AUD/USD Technical Strategy: Flat
- Support: 0.9266 (trend line), 0.9242 (38.2% Fib ret.)
- Resistance: 0.9325 (23.6% Fib ret.), 0.9377 (14.6% Fib ret.)
The Australian Dollar declined as expected against its US counterpart after prices produced a Shooting Star candlestick below the 0.95 figure. Prices are now wedged between resistance at the top of a downward-sloping channel and a rising trend line set from late January in the 0.9266-72. A break upward initially exposes the 23.6% Fibonacci retracement at 0.9325. Near-term support is at 0.9242, the 38.2% level, with a move below that eyeing the 50% Fib at 0.9174.
Prices are too close to relevant support and resistance levels to justify a trade on either the long or the short side of the argument from a risk/reward perspective. As such, we will remain flat and continue to wait from the sidelines for an attractive setup to emerge.
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.