AUD/USD Technical Analysis: Range Bottom Under Pressure

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

• 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.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

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