AUD/USD Technical Analysis: Waiting for New Short Setup

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Talking Points:

• AUD/USD Technical Strategy: Flat
• Support: 0.7715, 0.7559, 0.7465
• Resistance:0.7843, 0.8018, 0.8302

The Australian Dollar looks poised to continue higher against its US namesake after prices broke above channel resistance set from September 2014. Near-term resistance is at 0.7843, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 0.8018. Alternatively, a turn below resistance-turned-support at 0.7715 clears the way for a challenge of the March 11 low at 0.7559.

We sold AUDUSD at 0.7735 and subsequently booked profit on half of the position. The second half of the position was stopped out at breakeven. We will remain on the sidelines from here, waiting for another opportunity to enter short in line with the dominant multi-year trend.

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com