AUD/USD Technical Analysis: Aussie Bounce Hinted Ahead
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- AUD/USD Technical Strategy: Flat
- Support:0.8102, 0.8040, 0.7939
- Resistance:0.8126, 0.8202, 0.8287
The Australian Dollar may be readying to bounce against its US namesake as negative RSI divergence points to ebbing downside momentum. A daily close above channel top resistance at 0.8126 exposes the December 18 high at 0.8202. Alternatively, a reversal below the 14.6% Fibonacci expansion at 0.8102 clears the way for a challenge of the 23.6% level at 0.8040.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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.