AUD/USD Technical Analysis: Opting Against Short Position
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- 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. A daily close below range support at 0.7715 exposes the 14.6% Fibonacci expansion at 0.7638. Alternatively, a reversal above the intersection of trend line resistance and the 14.6% Fib retracement at 0.7899 opens the door for a test of the 23.6% threshold at 0.8069.
Entering short is tempting from a purely technical perspective but we will tactically opt to remain on the sidelines. The upcoming RBA monetary policy announcement threatens to unleash volatility that derails technical positioning. With that in mind, we will wait for event risk to pass before committing to a directional bias.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com