AUD/USD Technical Analysis: Passing on Double Bottom Setup
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- AUD/USD Technical Strategy: Flat
- Support: 0.7559, 0.7421, 0.7262
- Resistance:0.7733, 0.7900, 0.8058
The Australian Dollar may be carving out a double bottom above the 0.75 figure against its US counterpart. Near-term resistance is at 0.7733, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 0.7857-7900 area (23.6% level, February 25 high).Alternatively, a turn below the March 11 low at 0.7559clears the way for a challenge of the 38.2% Fib expansion at 0.7421.
While entering long is tempting from a purely technical perspective, we will opt to pass on the trade. Having put the RBA policy announcement in the rearview mirror, the Aussie now faces event risk by way of minutes from the March FOMC meeting. The release may derail technical positioning and we wait for it to pass before committing to a directional bias.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com