AUD/USD Technical Analysis: Wedge Setup Hints at Gains
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- AUD/USD Technical Strategy: Flat
- Support:0.9282, 0.9240, 0.9213
- Resistance: 0.9308, 0.9351, 0.9386
The Australian Dollar may be preparing to launch an upward reversal against its US counterpart as prices trace out a Falling Wedge chart formation. Near-term resistance is at 0.9308, marked by intersection of the Wedge top and the 23.6% Fibonacci expansion. A break above that on a daily closing basis exposes the 38.2% level at 0.9351. Alternatively, a turn below the 14.6% Fib at 0.9282 opens the door for a challenge of rising trend line support at 0.9240.
Risk/reward considerations argue against entering long with prices sitting in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now.
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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.