AUD/USD Technical Analysis: Narrow Range Still in Play
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- AUD/USD Technical Strategy: Flat
- Support: 0.7249, 0.7188, 0.7126
- Resistance:0.7343, 0.7396, 0.7431
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.
The dominant AUD/USD trend continues to favor the downside. With that in mind, we will treat any on-coming gains as corrective and look to an upswing as an opportunity to enter short. In the meantime, we will remain on the sidelines.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com