AUD/USD Technical Analysis: Stalling in Familiar Territory

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

• AUD/USD Technical Strategy: Flat
• Support:0.8126, 0.8047, 0.7919
• Resistance:0.8254, 0.8369, 0.8472

The Australian Dollar advanced against its US counterpart as expected after shoring a Hammer candlestick bolstered by positive RSI divergence. Near-term resistance is in the 0.8241-54 area, marked by the January 12 high and the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 0.8369. A bearish Dark Cloud Cover pattern now warns renewed weakness may be ahead however. A reversal below the 14.6% Fib expansion at 0.8129 opens the door for a test of the 23.6% threshold at 0.8047.

Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com