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AUD/USD Technical Analysis – Trend Line Marks Reversal

AUD/USD Technical Analysis – Trend Line Marks Reversal

2014-05-06 23:07:00
Ilya Spivak, Head Strategist, APAC
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Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Support: 0.9318 (14.6% Fib exp.), 0.9277 (trend line)
  • Resistance: 0.9390 (23.6% Fib exp.), 0.9460-0.9507 (Apr 10 high, 38.2% Fib exp.)

The Australian Dollar launched a sharp recovery against its US counterpart having found support at a rising trend line set from late January. A break above the 14.6% Fibonacci expansion at 0.9318 has exposed the 23.6% level at 0.9390. A further push beyond that targets the 0.9460-9507 area, marked by the April 10 high and the 38.2% Fib. Alternatively, a reversal back below 0.9318 clears the way for another test of the trend line, now at 0.9277.

The available trading range is too narrow to justify a position at current levels from a risk/reward perspective given volatility as implied by 20-day ATR. With that in mind, we will remain on the sidelines for the time being.

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AUD/USD Technical Analysis – Trend Line Marks Reversal

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.

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