AUD/USD Technical Analysis: Monthly Uptrend Pressured
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- AUD/USD Technical Strategy: Flat
- Support: 0.7969, 0.7922, 0.7847
- Resistance:0.8057, 0.8121, 0.8200
The Australian Dollar moved lower for a third consecutive day against its US namesake, with prices moving to test the limits of their monthly uptrend. Near-term support is in the 0.7969-93 area (trend line, 38.2% Fibonacci expansion), with a break below that on a daily closing basis exposing the 38.2% Fib retracement at 0.7922. Alternatively, a reversal above the 50% expansion at 0.8057 opens the door for a test of the 61.8% threshold at 0.8121.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.