AUD/USD Technical Analysis: Digesting Gains Below 0.79
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- AUD/USD Technical Strategy: Flat
- Support: 0.7746, 0.7689, 0.7597
- Resistance:0.7838, 0.7912, 0.7987
The Australian Dollar is digesting gains against its US namesake after producing the largest daily advance in four months. Near-term resistance is at 0.7838, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 0.7912. Alternatively, a move back below the 23.6% Fib at 0.7746 opens the door for a test of the 14.6% expansion at 0.7689.
A long trade seems tempting from a purely technical perspective but we will tactically stand aside until US-linked event risk passes. Friday’s Employment report represents significant event risk that may derail technical positioning. With that in mind, we will remain flat for now and 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.