AUD/USD Technical Analysis: Bottom Forming Near 0.80?

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Talking Points:

• AUD/USD Technical Strategy: Flat
• Support:0.8020, 0.7900, 0.7803
• Resistance:0.8094, 0.8214, 0.8288

The Australian Dollar stalled above the 0.80 figure against its US counterpart after sliding to the weakest level in five years. Near-term support is at 0.8020, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 0.7900. Positive RSI divergence warns a rebound may be ahead however. A reversal back above the 14.6% level at 0.8094 opens the door for a challenge of the December 31 high at 0.8214.

The available trading range is too narrow to justify a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain on the sidelines for now and wait 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