AUD/USD Technical Analysis: Support Found Below 0.79
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- AUD/USD Technical Strategy: Flat
- Support:0.7855, 0.7751, 0.7623
- Resistance:0.8031, 0.8137, 0.8256
The Australian Dollar rose against its US counterpart as expected after prices produced a Hammer candlestick. A daily close above the 0.8006-31 area marked by the 14.6% Fibonacci retracement and the January 7 low exposes the 0.8100-37 region (23.6% level, falling trend line). Alternatively, a reversal below the 50% Fibexpansion at 0.7855opens the door for a test of the 61.8% expansion at 0.7751.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable 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.