AUD/USD Technical Analysis: Aussie Drops to 4-Year Low
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- AUD/USD Technical Strategy: Flat
- Support:0.8466, 0.8364, 0.8263
- Resistance:0.8540, 0.8592, 0.8669
The Australian Dollar accelerated downward against its US namesake, clearing the bottom set early in the month to hit a four-year low. Near-term support is at 0.8466, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 0.8364. Alternatively, a turn above support-turned-resistance at 0.8540, the November 7 low, clears the way for a test of the 23.6% Fib at 0.8592.
Prices are wedged too tightly between near-term up- and down-side technical barriers to justify taking a trade on the long or short side from a risk/reward perspective. We will continue to stand aside for the time being, waiting for a more compelling 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