AUD/USD Technical Analysis: Bearish Breakout in Progress?
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- AUD/USD Technical Strategy: Flat
- Support:0.8784, 0.8706, 0.8641
- Resistance:0.8887, 0.8971, 0.9073
The Australian Dollar may be readying to renew its downward push against its US counterpart after prices put in a Bearish Engulfing candlestick pattern. A daily close below the intersection of a rising trend line and the 14.6% Fibonacci expansion at 0.8784 exposes the 23.6% level at 0.8706.Alternatively, a reversal above support-turned-resistance at 0.8887, the March 2014 low, opens the door for a challenge of the 38.2% Fib retracement at 0.8971.
Entering short seems premature for now absent confirmation of a reversal on a break of trend line support. On the other hand, the absence of clearly defined bullish cues warns against taking up the long side. We will remain flat for now until greater clarity emerges.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com