AUD/USD Technical Analysis: Channel Resistance Pressured
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- AUD/USD Technical Strategy: Flat
- Support: 0.7649, 0.7528, 0.7330
- Resistance:0.7760, 0.7878, 0.8075
The Australian Dollar is working to overturn a five-month down trend against its US counterpart. Near-term channel top resistance is at 0.7760, with a break above that on a daily closing basis exposes the 23.6% Fibonacci retracement at 0.7878. Alternatively, a move belowthe 14.6% Fib expansion at 0.7649clears the way for a challenge of the 0.7528-59 area (23.6% level, March 11 low).
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