AUD/USD Technical Analysis: Aussie Rallies Most in 5 Months

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Talking Points:

• AUD/USD Technical Strategy: Flat
• Support: 0.7746, 0.7689, 0.7597
• Resistance:0.7838, 0.7912, 0.7987

The Australian Dollar launched sharply higher, putting the largest daily advance in four months against its US counterpart. A daily close above the 38.2% Fibonacci expansion at 0.7838 exposes the 50% level at 0.7912. Alternatively, a turn back below the 23.6% Fib at 0.7746 clears the way for a challenge of the 14.6% expansion at 0.7689.

The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com