AUD/USD Technical Analysis: Support Above 0.74 Holds Up
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- AUD/USD Technical Strategy: Flat
- Support: 0.7417, 0.7283, 0.7150
- Resistance:0.7499, 0.7566, 0.7632
The Australian Dollar moved lower against its US counterpart as expected after prices put in a bearish Three Inside Down candlestick pattern. Near-term support is at 0.7417, the 76.4% Fibonacci expansion, with a break below that on a daily closing basis exposing the 100% level at 0.7283. Alternatively, a move above the 61.8% Fib at 0.7499 opens the door for a challenge of the 50% expansion at 0.7566.
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.