AUD/USD Technical Analysis: Aussie Drops to 6-Year Low
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- AUD/USD Technical Strategy: Flat
- Support: 0.7251, 0.7129, 0.7031
- Resistance:0.7326, 0.7448, 0.7508
The Australian Dollar resumed the down trend against itsUS counterpart, dropping to the lowest level in over six years. Near-term support is at 0.7251, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 0.7129. Alternatively, a move above the 14.6% Fib at 0.7326 opens the door for a challenge of the July 21 high at 0.7448.
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.