AUD/USD Technical Analysis: Indecision May Yield Bounce
To receive Ilya's analysis directly via email, please SIGN UP HERE
- AUD/USD Technical Strategy: Flat
- Support:0.8263, 0.8137, 0.7934
- Resistance:0.8364, 0.8466, 0.8592
The Australian Dollar may be readying to turn higher against its US counterpart as a Spinning Top candlestick points to indecision following a selloff. A daily close above the 50% Fibonacci expansion at 0.8364 exposes the 38.2% level at 0.8466. Alternatively, a reversal below the 61.8% Fib at 0.8263 opens the door for a challenge of the 76.4% expansion at 0.8137.
The Spinning Top candle is not a significant-enough signal to justify entering long by itself without further confirmation. Needless to say, entering short is unattractive from a risk/reward perspective given proximity to support. With that in mind, we will remain on the sidelines for now until a more attractive opportunity presents itself.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.