AUD/USD Technical Analysis: Aussie Touches 2-Week High
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- AUD/USD Technical Strategy: Flat
- Support:0.8659, 0.8531, 0.8441
- Resistance:0.8743, 0.8869, 0.8970
The Australian Dollar advanced as expected against its US counterpart after prices put in a Bullish Engulfing candlestick pattern. A daily close above the 23.6% Fibonacci retracementat 0.8743 exposes the 38.2% level at 0.8869. Alternatively, a reversal back below the January 2014 lowat 0.8659 opens the door for a challenge of the 50% Fib expansion at 0.8531.
Risk/reward considerations argue against entering long with prices yet to confirm a break higher on a daily closing basis. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com