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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support:0.9258, 0.9223-31, 0.9198
- Resistance: 0.9286, 0.9319, 0.9357
The Australian Dollar moved downward against its US counterpart as expected after prices produced a bearish Dark Cloud Cover candlestick pattern. A daily close below support at 0.9258, the 50% Fibonacci expansion, exposes the 0.9223-31 area marked by a range bottom from late March and the 61.8% level. Alternatively, a move above the 38.2% Fib at 0.9286 clears the way for a test of the 23.6% expansion at 0.9319.
Prices are wedged too closely between near-term support and resistance to justify taking a trade from a risk/reward perspective. We will stand aside for the time being, waiting for a more attractive setup to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
