AUD/USD Technical Analysis: Range-Bound Near Monthly Low
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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 remains in digestion mode against its US counterpart, with prices oscillating in a narrow range above November’s swing bottom. A daily close below the 23.6% Fibonacci expansionat 0.8592 exposes the November 7 low at 0.8540. Alternatively, a reversal above the 0.8659-69 area marked by the January 2014 lowand the 14.6% expansion opens the door for a challenge of the 23.6% Fib retracement at 0.8743.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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