AUD/USD Technical Analysis: Attempting to Mount Rebound
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- AUD/USD Technical Strategy: Flat
- Support:0.8094, 0.8020, 0.7900
- Resistance:0.8241, 0.8369, 0.8472
The Australian Dollar is trying to rebound against its US counterpart as expected after producing a Hammer candlestick reinforced by positive RSI divergence. A daily close above the 8214-41 area marked by the December 31 high and the 23.6% Fibonacci retracement exposes the 38.2% level at 0.8369. Alternatively, a turn below the 14.6% Fib expansion at 0.8094 clears the way for a challenge of the 23.6% threshold at 0.8020.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.