AUD/USD Technical Analysis: Sellers Make Slow Progress
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- AUD/USD Technical Strategy: Flat
- Support:0.9268, 0.9223-45, 0.9085
- Resistance: 0.9324-44, 0.9438-60, 0.9504
The Australian Dollar moved lower against its US namesake as expected after putting in a bearish Dark Cloud Cover candlestick pattern. Support comes in at 0.9268, the bottom of a falling channel established from the July 1 high. A break below that on a daily closing basis exposes the 0.9223-45 area, marked by a range bottom in play since March and the 23.6% Fibonacci expansion. Alternatively, reversing above the 0.9324-44 zone bracketed by a horizontal pivot and the 14.6% level opens the door for a challenge of the channel top at 0.9438.
Risk/reward considerations argue against entering short with prices trading in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now.
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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.