AUD/USD Technical Analysis: Attempted Recovery Fizzles
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- AUD/USD Technical Strategy: Flat
- Support:0.8263, 0.8137, 0.7934
- Resistance:0.8311, 0.8364, 0.8466
The Australian Dollar attempted to bounce but the move failed to find follow-through, with prices rejected back into a familiar consolidation range. A daily close above channel resistance at 0.8311 exposes the 50% Fibonacci expansion at 0.8364. Alternatively, a reversal below the 61.8% level at 0.8263 clears the way for a challenge 0.8137-77 area marked by the channel floor and the 76.4% Fib.
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.