AUD/USD Technical Analysis: Monthly Range Top in Focus
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- AUD/USD Technical Strategy: Flat
- Support:0.7783, 0.7717, 0.7619
- Resistance:0.7881, 0.7960, 0.8039
The Australian Dollar is once again poised to challenge the top of the range encasing prices over the past month against its US namesake. Near-term resistance is at 0.7881, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing 0.7960 (50% level, falling trend line). Alternatively, a turn below the 23.6% retracement at 0.7783clears the way for a challenge of the 23.6% Fib expansion at 0.7717.
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 short 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