AUD/USD Technical Analysis: Range Top Under Pressure
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- AUD/USD Technical Strategy: Flat
- Support:0.8085, 0.8012, 0.7895
- Resistance:0.8202, 0.8281, 0.8401
The Australian Dollar continues to oscillate in a narrow range having found support near the 0.81 figure against its US namesake. Near-term resistance is at 0.8202, the December 18 high, with a break above that on a daily closing basis exposing the 23.6% Fibonacci retracement at 0.8281. Alternatively, a reversal below the 14.6% Fib expansion at 0.8085 clears the way for a challenge of the 23.6% threshold at 0.8012. Positive RSI divergence hints at ebbing bearish momentum and warns a bounce may be ahead.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.