AUD/USD Technical Analysis: Candle Setup Hints at Gains
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- AUD/USD Technical Strategy: Flat
- Support: 0.7249, 0.7188, 0.7126
- Resistance:0.7343, 0.7396, 0.7482
The Australian Dollar may move higher against its US counterpart after prices put in a bullish Morning Star candlestick pattern. Near-term resistance is at 0.7343, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 0.7396. Alternatively, a move below the 38.2% Fib expansion at 0.7249 opens the door for a challenge of the 50% threshold at 0.7188.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short 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.