AUD/USD Technical Analysis: Eyeing Monthly Lows Anew
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- AUD/USD Technical Strategy: Flat
- Support:0.8031, 0.7959, 0.7855
- Resistance:0.8087, 0.8166, 0.8239
The Australian Dollar has slumped back toward monthly lows against its US counterpart after issuing the largest daily decline in three weeks. A daily close below the January 7 low at 0.8031 exposes the 38.2% Fibonacci expansion at 0.7959. Alternatively, a reversal above the 23.6% level at 0.8087 clears the way for a challenge of the 14.6% Fib at 0.8166.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
NOTE: FXCM Inc, Parent Company of DailyFX, will raise margin requirements given volatility risk
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com