AUD/USD Technical Analysis: Topping at Channel Resistance?
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- AUD/USD Technical Strategy: Flat
- Support:0.9310, 0.9270, 0.9239-45
- Resistance: 0.9369, 0.9401, 0.9440
The Australian Dollar may be topping against its US namesake after prices put in a Bearish Engulfing candlestick formation. Near-term support is at 0.9310, marked by a rising trend line set from late August and the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 0.9270. Alternatively, a reversal above the intersection of the 50% Fib retracement and a falling channel top at 0.9369 opens the door for a challenge of the 61.8% threshold at 0.9401.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.