AUD/USD Technical Analysis: Candle Setup Hints at Gains
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- AUD/USD Technical Strategy: Flat
- Support:0.8263, 0.8216, 0.8137
- Resistance:0.8395, 0.8501, 0.8673
The Australian Dollar began to turn higher as expected, with the case for the upside now bolstered by the appearance of a bullish Morning Star candle pattern. Near-term resistance is at 0.8395, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 0.8501. Alternatively, a turn below the 61.8% Fib at 0.8263 opens the door for a challenge of channel support at 0.8216.
While entering long seems compelling from a purely technical perspective, we will tactically opt to stand aside. The series of lower highs defining the down trend from mid-November highs remains intact while seasonal profit-taking on risk-linked positions may weigh on the sentiment-sensitive Aussie and undermine follow-through. We will wait for the bounce to offer a selling opportunity in line with the longer-term trend.
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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.