AUD/USD Technical Analysis: Range Top at 0.79 Threatened

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Talking Points:

• AUD/USD Technical Strategy: Flat
• Support: 0.7715, 0.7559, 0.7460
• Resistance:0.7900, 0.8058, 0.8221

The Australian Dollar accelerated upward, with prices on pace to challenge the top of the long-standing range top against its US namesake. A daily close above the 0.7857-7900 area (23.6% level, February 25 high) exposes the 38.2% level at 0.8059.Alternatively, a turn below the 0.7715-33 zone (14.6% Fib, horizontal pivot) clears the way for a challenge of the range floor at 0.7559.

We see the long-term AUDUSD trend as favoring the downside. With that in mind we will opt against entering long and treat on-coming gains as corrective, looking for the move to offer a selling opportunity once upside momentum is exhausted. In the meantime, we remain flat.

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com