AUD/USD Technical Analysis: Looking for Defined Breakout
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- AUD/USD Technical Strategy: Flat
- Support:0.9324-44, 0.9223-45, 0.9085
- Resistance: 0.9460, 0.9504, 0.9600
The Australian Dollar is struggling to form a top against its US counterpart after showing a bearish Dark Cloud Cover candlestick pattern. A daily close below support in the 0.9324-44 area, marked by a horizontal pivot in play since March and the 14.6% Fibonacci expansion, initially exposes the 0.9223-45 zone, bracketed by a range bottom and the 38.2% level. Alternatively, a turn above the April 10 high at 0.9460 clears the way for a test of the July 1 top at 0.9504.
Positioning is inconclusive for the time being. Bearish cues remain but follow-through has been absent. We will wait on the sidelines until an actionable opportunity with greater potential for follow-through presents itself.
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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.