AUD/USD Technical Analysis: Support Below 0.76 in Focus

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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 paused to digest losses against its US counterpart ahead of a test of a key bottom carved out between mid- March and April. A daily close below the 76.4% Fibonacci expansionat 0.7580 exposes the 100% level at 0.7400. Alternatively, a turn above the 61.8% Fib at 0.7691 clears the way for a challenge of the 50% expansion at 0.7781.

While entering short seems tempting from a purely technical perspective, we will tactically opt to stand aside. The upcoming RBA monetary policy announcement represents significant event risk that may derail technical positioning. With that in mind, 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