AUD/USD Technical Analysis: Looking for Directional Clarity
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- AUD/USD Technical Strategy: Flat
- Support:0.9280, 0.9223-45, 0.9085
- Resistance: 0.9366, 0.9460, 0.9504
The Australian Dollar declined against its US counterpart as expected after prices produced a bearish Dark Cloud Cover candlestick pattern. A daily close below rising trend line support at 0.9280 exposes the 0.9223-45 area marked by a range bottom in play since March and the 23.6% Fibonacci expansion. Alternatively, a turn above upward-sloping support-turned-resistance at 0.9366 opens the door for a test 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. On the other hand, the series of higher lows carved out since May 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.