AUD/USD Technical Analysis: Aussie Drops Most in 2 Weeks
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- AUD/USD Technical Strategy: Flat
- Support:0.8592, 0.8540, 0.8466
- Resistance:0.8669, 0.8743, 0.8867
The Australian Dollar turned sharply lower against its US namesake, producing the largest one-day decline in two weeks. Near-term support is at 0.8592, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the November 7 low at 0.8540. Alternatively, a turn back above the 0.8659-69 area marked by the January 2014 lowand the 14.6% expansion clears the way for a test of the 23.6% Fib retracement at 0.8743.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.