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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support:0.9471, 0.9444, 0.9409
- Resistance: 0.9499, 0.9534, 0.9590
The Australian Dollar pushed aggressively higher against its US namesake, triggering the stop-loss on our AUDUSD short position from 0.9403. Buyers are testing resistance at 0.9499, the 61.8% Fibonacci expansion, with a daily close above this barrier exposing the 76.4% level at 0.9534. Alternatively, a reversal back below the 50% level at 0.9471 clears the way for a test of the 0.9444, the 38.2% Fib.
Risk/reward considerations argue against entering long with prices sitting squarely at relevant resistance. On the other hand, the absence of a defined bearish reversal signal suggests entering short is premature. We will remain flat for now, waiting for another trading opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
