AUD/USD Technical Analysis: Candle Hints at Bounce Ahead
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- AUD/USD Technical Strategy: Flat
- Support:0.7855, 0.7751, 0.7623
- Resistance:0.7959, 0.8031, 0.8087
The Australian Dollar snapped a five-day losing streak and put in a Hammer candlestick, hinting a bounce against its US namesake may be ahead. Near-term resistance is at 0.7959, the 38.2%Fibonacci expansion, with a break above that on a daily closing basis exposing the January 7 lowat 0.8031. Alternatively, a move below the 50% Fibat 0.7855opens the door for a test of the 61.8% expansion at 0.7751.
Positioning is inconclusive at this point, with prices offering no clear-cut and actionable signal to initiate a long or short trade. We will continue to remain on the sidelines for the time being, waiting for a compelling 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.