AUD/USD Technical Analysis: Aussie Slumps to 4-Year Low
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- AUD/USD Technical Strategy: Flat
- Support:0.8364, 0.8263, 0.8137
- Resistance:0.8466, 0.8592, 0.8669
The Australian Dollar continues to push downward against its US counterpart, hitting the lowest level in over four years. A daily close below the 50% Fibonacci expansionat 0.8364 exposes the 61.8% level at 0.8263. Alternatively, a reversal above the 38.2% Fib at 0.8466 opens the door for a challenge of the 0.8552-92 area marked by the November 6 low and the 23.6% expansion.
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
--- 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.