AUD/USD Technical Analysis: Selloff Extends for Fifth Day
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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 remains under heavy pressure, falling for a fifth consecutive day against its US namesake. Near-term support is at 0.8364, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 61.8% level at 0.8263. Alternatively, a turn above the 38.2% Fib at 0.8466 clears the way for a test of the 0.8552-92 area marked by the November 6 low and the 23.6% expansion.
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
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com