AUD/USD Technical Analysis: Support Near 0.77 in Focus
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- AUD/USD Technical Strategy: Flat
- Support: 0.7704, 0.7559, 0.7421
- Resistance:0.7878, 0.8075, 0.8235
The Australian Dollar edged lower against its US namesake as expected after putting in a Doji candlestick. A daily close below resistance-turned-support at 0.7704 exposes the 0.7559-7618 area (23.6% Fibonacci expansion, March 11 low).Alternatively, a reversal above the 23.6% Fib retracement at 0.7878clears the way for a challenge of the 38.2% level at 0.8075.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.