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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support: 0.9199, 0.9085, 0.8955
- Resistance: 0.9245-67, 0.9367, 0.9504
The Australian Dollar may have finally broken out of its stubborn five-month range against its US counterpart. A daily close below falling channel floor support at 0.9199 exposes the 38.2% Fibonacci expansion at 0.9085. Alternatively, a reversal above the 0.9245-67 area marked by the 23.6% level and an upward-sloping trend line set from early April clears the way for a test of the channel top at 0.9367.
Risk/reward considerations argue against entering short with prices sitting at support. We remain on the sidelines for the time being, waiting for a corrective bounce or a further push downward to generate an actionable selling opportunity.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
