AUD/USD Technical Analysis: Support at January Low Holds
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- AUD/USD Technical Strategy: Flat
- Support:0.8620, 0.8530, 0.8441
- Resistance:0.8731, 0.8799, 0.8887
The Australian Dollar declined against its US namesake as expected after prices put in a Bearish Engulfing candlestick pattern. Near-term support is in the 0.8620-59 area marked by the January 2014 low and the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 0.8530. Alternatively, a turn above the 23.6% Fib at0.8731 clears the way for a test of the 0.8774-99 zone (trend line support-turned-resistance, 14.6% expansion).
The available trading range is too narrow to justify a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain on the sidelines for now until a more attractive opportunity presents itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com