AUD/USD Technical Analysis: Torn Between Conflicting Cues
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- AUD/USD Technical Strategy: Flat
- Support:0.9286, 0.9223-45, 0.9085
- Resistance: 0.9324-44, 0.9460, 0.9504
The Australian Dollar moved lower against its US namesake as expected after putting in a bearish Dark Cloud Cover candlestick pattern. Prices are testing support at 0.9286, the floor of a rising channel that has guided the pair since April. A daily close below this barrier exposes the 0.9223-45 area marked by a range bottom set from 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 April 10 high at 0.9460.
Positioning looks inconclusive at this point. The Dark Cloud Cover pattern and subsequent losses argue for a top in place near 0.95, but the outlines of the advance May’s lows remain intact and a Morning Star pattern warns a bounce may be ahead. We will stand aside for now, waiting for greater clarity to emerge.
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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.