News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
AUD/USD Technical Analysis: Passing on Short Trade Setup

AUD/USD Technical Analysis: Passing on Short Trade Setup

Ilya Spivak, Head Strategist, APAC

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Support:0.7715, 0.7638, 0.7469
  • Resistance:0.7899, 0.8069, 0.8343

The Australian Dollar may be readying to resume the down trend against its US counterpart after putting in a Bearish Engulfing candlestick pattern. Near-term range support is at 0.7715, with a break below that on a daily closing basis exposing the 14.6% Fibonacci expansion at 0.7638. Alternatively, a push above the intersection of trend line resistance and the 14.6% Fib retracement at 0.7899 clears the way for a challenge of the 23.6% threshold at 0.8069.

While entering short seems compelling from a purely technical perspective, we will tactically opt to stand aside for now. Priced-in expectations ahead of next week’s RBA monetary policy announcement see investors split 50/50 on the probability of another rate cut, seemingly assuring volatility that threatens to derail existing positioning. With that in mind, we will wait for event risk to pass before committing to a directional bias.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

AUD/USD Technical Analysis: Passing on Short Trade Setup

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.

DISCLOSURES