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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support:0.9181-210, 0.9082, 0.8982
- Resistance: 0.9281, 0.9354, 0.9460
The Australian Dollar moved lower against its US namesake as expected after putting in a bearish Dark Cloud Cover candlestick pattern. A break below rising trend line support set from early may has exposed the 0.9181-0.9210 area marked by a range bottom in play since late March and the 38.2% Fibonacci retracement. Pushing further below that targets the 50% level at 0.9082. Alternatively, a reversal back above the trend line – now at 0.9281 – clears the way for a challenge of upward-sloping support-turned-resistance at 0.9354.
The available trading range is too narrow to justify a trade on the long or short side of the equation from a risk/reward perspective. We will remain flat for now, waiting for a more attractive 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
