AUD/USD Technical Analysis: Range Breakout Under Way?
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- AUD/USD Technical Strategy: Flat
- Support: 0.7723, 0.7619, 0.7540
- Resistance: 0.7783, 0.7881, 0.7960
The Australian Dollar may be preparing to renew the descent against its US namesake as prices threaten to piece two-week range support. Near-term support is at 0.7723, the 14.6% Fibonacci retracement, with a break below that confirmed on a daily closing basis exposing the 38.2% Fib expansion at 0.7619. Alternatively, a reversal above the 23.6% retracement at 0.7783clears the way for a challenge of the 38.2% expansion at 0.7881.
Entering short seems premature absent confirmation of a resistance break. Furthermore, betting on follow-through of a technical breakout is complicated by the proximity of key fundamental event risk by way of January’s Employment report. 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.