AUD/USD Technical Analysis: March Bottom Back in Play
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- AUD/USD Technical Strategy: Flat
- Support: 0.7559, 0.7421, 0.7262
- Resistance:0.7740, 0.7937, 0.8048
The Australian Dollar edged lower against its US namesake as expected after putting in a Doji candlestick. A daily close below the 0.7559-7618 area (23.6% Fibonacci expansion, March 11 low) exposes the 38.2% level at 0.7421.Alternatively, a reversal above the 14.6% expansion at 0.7740opens the door for a test of the March 24 high at 0.7937.
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.