AUD/USD Technical Analysis – Next Leg Higher Under Way?
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- AUD/USD Technical Strategy: Flat
- Support: 0.9318 (14.6% Fib exp., channel bottom), 0.9229
- Resistance: 0.9390 (23.6% Fib exp.), 0.9460-0.9507 (Apr 10 high, 38.2% Fib exp.)
The Australian Dollar is attempting to launch the next leg of an advance started in late January after bouncing from rising channel support. A break above the 23.6% Fibonacci expansion on a daily closing basis targets the 0.9460-0.9507 area, marked by the April 10 high and the 38.2% level. Alternatively, a turn below 0.9318 – the intersection of the channel floor and the 14.6% Fib – exposes a horizontal support shelf at 0.9229.
Risk/reward considerations argue against entering long with prices squarely at resistance. We will continue to stand aside for now, waiting for a more attractive setup to present itself.
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.