AUD/USD Technical Analysis: Trying to Clear Path Above 0.83
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- AUD/USD Technical Strategy: Flat
- Support:0.8148, 0.8031, 0.7955
- Resistance:0.8239, 0.8367, 0.8471
The Australian Dollar advanced against its US counterpart as expected after shoring a Hammer candlestick bolstered by positive RSI divergence. Near-term resistance is at 0.8239, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 0.8367. Alternatively, a reversal below rising trend line support at 0.8148 opens the door for a test of the 23.6% threshold at 0.8047.
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.