AUD/USD Technical Analysis: Digesting Loses Below 0.73
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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 paused to digest losses after declining to a six-year low against itsUS namesake. A daily close below the 23.6% Fibonacci expansionat 0.7251 exposes the 38.2% level at 0.7129. Alternatively, a turn above the 14.6% Fib at 0.7326 clears the way for a test of the July 21 high at 0.7448.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.