AUD/USD Technical Analysis: Bottom Set Above 0.85 Mark?
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- AUD/USD Technical Strategy: Flat
- Support:0.8479, 0.8377, 0.8251
- Resistance:0.8581, 0.8659, 0.8772
The Australian Dollar may be gearing up for a recovery against its US namesake after putting in a Bullish Engulfing candlestick pattern. Near-term resistance is at 0.8659, the January 2014 low, with a break above that on a daily closing basis exposing the 23.6% Fibonacci retracement at 0.8743. Alternatively, a turn below the 50% Fib expansion at 0.8531 clears the way for a test of the 61.8% threshold at 0.8441.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind 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