AUD/USD Technical Analysis: Rally Fails at Range Resistance
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- AUD/USD Technical Strategy: Flat
- Support: 0.7731, 0.7680, 0.7597
- Resistance:0.7818, 0.7880, 0.7946
The Australian Dollar attempted to break upward against its US namesake but prices failed to clear a now-familiar range top. A daily close above the 0.7813-18 area (38.2% Fibonacci retracement, June 3 high) exposes the 50% level at 0.7880. Alternatively, a turn below the 23.6% Fib at 0.7731 clears the way for a test of the 14.6% retracement at 0.7680.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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--- 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.