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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support:0.9258, 0.9223-31, 0.9198
- Resistance: 0.9286, 0.9319, 0.9356
The Australian Dollar moved lower against its US namesake as expected after putting in a bearish Dark Cloud Cover candlestick pattern. Near-term support is at 0.9258, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 0.9223-31 area marked by a range bottom from late March and the 61.8% level. Alternatively, a turn above the 38.2% Fib at 0.9286 opens the door for a challenge of the 23.6% expansion at 0.9319.
The available trading range is too narrow to justify taking a short or a long position at current levels 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
