AUD/USD Technical Analysis: Range Bottom Under Pressure
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- AUD/USD Technical Strategy: Flat
- Support: 0.7559, 0.7499, 0.7417
- Resistance:0.7680, 0.7731, 0.7818
The Australian Dollar moved lower against its US counterpart as expected after producing a bearish Three Inside Down candlestick pattern. Near-term support is in the 0.7559-97 area (triple bottom, June 1 low), with a break below that on a daily closing basis exposing the 61.8% Fibonacci expansion at 0.7499. Alternatively, a move above the 14.6% Fib retracement at 0.7680 opens the door for a challenge of the 23.6% threshold at 0.7731.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
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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.