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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support: 0.7748, 0.7559, 0.7452
- Resistance:0.7878, 0.8075, 0.8235
The Australian Dollar looks to be gearing up for a larger upward correction against its US namesake after prices cleared resistance dating to late October. A daily close above the 23.6% Fibonacci retracement at 0.7878 exposes the 38.2% level at 0.8075. Alternatively, a reversal below channel top resistance-turned-support at 0.7748opens the door for a test of 0.7559, the March 11 low.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
