AUD/USD Technical Analysis: April Floor in the Crosshairs

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Talking Points:

• AUD/USD Technical Strategy: Flat
• Support: 0.7580, 0.7400, 0.7220
• Resistance:0.7691, 0.7781, 0.7871

The Australian Dollar is poised challenge April’s floor against its US counterpart after sellers dropped for a third consecutive day to clear the 0.77 figure. Near-term support is at 0.7580, the 76.4% Fibonacci expansion, with a break below that on a daily closing basis exposing the 100% level at 0.7400. Alternatively, a rebound above the 61.8% Fib at 0.7691 opens the door for a test of the 50% expansion at 0.7781.

While entering short seems compelling from a purely technical perspective, we will tactically opt to stand aside. The upcoming release of revised first-quarter US GDP figures represents significant event risk that may derail technical positioning.We will wait for the coast to clear 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