AUD/USD Technical Analysis: 8-Month Trend Line at Risk
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- AUD/USD Technical Strategy: Flat
- Support:0.7851, 0.7715, 0.7625
- Resistance:0.7899, 0.8069, 0.8343
The Australian Dollar is attempting to break upward against its US namesake having languished in a narrow range for nearly a month. A daily close above the intersection of trend line resistance and the 14.6% Fibonacci retracement at 0.7899 exposes the 23.6% level at 0.8069. Alternatively, a reversal below range top resistance-turned-support at 0.7851 opens the door for a test of range support at 0.7715.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short 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