AUD/USD Technical Analysis: Digesting Gains Below 0.81
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- AUD/USD Technical Strategy: Flat
- Support: 0.7857, 0.7706, 0.7559
- Resistance:0.8058, 0.8221, 0.8384
The Australian Dollar paused to digest gains below the 0.81 figure against its US namesake after starting an upside reversal, as expected. Near-term resistance is at 0.8059, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 0.8221. Alternatively, a move below the 0.7857-0.7900 area (range top resistance-turned-support, 23.6% Fib) opens the door for a test of the 0.7706-33 zone (range mid-line, 14.6% retracement).
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com