AUD/USD Technical Analysis: Working on Sixth Down Day

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Talking Points:

• AUD/USD Technical Strategy: Flat
• Support:0.7855, 0.7751, 0.7623
• Resistance:0.7959, 0.8031, 0.8087

The Australian Dollar is working on the sixth consecutive decline against its US counterpart, with sellers trying to clear a path below the 0.78 figure. A daily close below the 50% Fibonacci expansion at 0.7855 exposes the 61.8% level at 0.7751. Alternatively, a reversal above the 38.2% Fib at 0.7959 clears the way for a challenge of support-turned-resistance at 0.8031, the January 7 low.

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.

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Daily Chart - Created Using FXCM Marketscope

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