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- AUD/USD Technical Strategy: Flat
- Support: 0.9318 (14.6% Fib exp.), 0.9296 (channel bottom)
- Resistance: 0.9390 (23.6% Fib exp.), 0.9460-0.9507 (Apr 10 high, 38.2% Fib exp.)
The Australian Dollar broke advanced against its US namesake, completing a bullish Flag chart formation. Prices are testing resistance at 0.9390, the 23.6% Fibonacci expansion, with a break above that exposing the 0.9460-0.9507 area marked by the April 10 high and the 38.2% level. Support is at 0.9318, the 14.6% Fib, followed by a rising channel bottom at 0.9296.
Prices are too close to relevant resistance to justify a long position from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal warns against taking up the short side. With that in mind, we will continue to wait on the sidelines for the time being.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com