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Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Support: 0.9356 (channel bottom), 0.9318 (14.6% Fib exp.)
  • 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. 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. Channel support is now at 0.9356, followed by the 14.6% Fib at 0.9318.

Prices are wedged too closely between near-term up- and down-side technical barriers to justify taking a trade at current levels from a risk/reward perspective. We will continue to wait on the sidelines for the time being.

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AUD/USD Technical Analysis – Capped Below 0.94 Figure

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com