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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support: 0.7323, 0.7234, 0.7144
- Resistance:0.7379, 0.7407, 0.7468
The Australian Dollar is digesting gains after turning upward against its US counterpart as expected having formed a bullish Morning Star candlestick pattern. Near-term resistance is at 0.7379, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing a falling trend line at 0.7407. Alternatively, a reversal below the 14.6% level at 0.7323 opens the door for a challenge of the July 31 low at 0.7234.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
