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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support: 0.7706, 0.7548, 0.7386
- Resistance:0.7900, 0.8059, 0.8221
The Australian Dollar may be resuming its down trend against the US Dollar after prices slipped back below the 0.79 figure. A daily close below the 0.7706-50 area (range mid-line, 23.6% Fibonacci expansion) exposes the 0.7548-59 zone (range support, 38.2% level). Alternatively, a push above the 0.7874-0.7900 region (range top, 14.6% expansion) clears the way for a challenge of the 38.2% Fib retracement at 0.8059.
A short position seem attractive from a purely technical point of view, but we will tactically stand aside for now. We are leery of committing to a direction bias ahead of the upcoming RBA monetary policy announcement, which we suspect may produce Aussie gains. We will wait for event risk to pass the reassess thereafter.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
