AUD/USD Technical Analysis – April Top in the Crosshairs
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- AUD/USD Technical Strategy: Flat
- Support: 0.9460-0.9507 (Apr 10 high, 38.2% Fib exp., channel floor), 0.9602 (50% Fib exp.)
- Resistance: 0.9390 (23.6% Fib exp.), 0.9318 (14.6% Fib exp.)
The Australian Dollar is within striking distance of its April high after prices secured a foothold above the 0.94 level against the US Dollar once again. Critical resistance lines up in the 0.9460-0.9507 area, marked by the April 10 top, the 38.2% Fibonacci expansion, and the underside of a previously broken rising channel. A daily close above this barrier initially exposes the 50% Fib at 0.9602. Alternatively, a move back below the 23.6% level at 0.9390 clears the way for a test of the 14.6% expansion at 0.9318.
Our AUDUSD short trade from 0.9328 has been stopped out on today’s daily close above 0.9408. Prices are too close to resistance to justify entering long from a risk/reward perspective while the absence of a bearish reversal signal argues against re-trying the short side. We will stay flat for now.
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.