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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support: 0.7338, 0.7259, 0.7193
- Resistance:0.7393, 0.7468, 0.7541
The Australian Dollar is attempting to recover against its US namesake as expected after putting in a bullish Morning Star candlestick pattern. A daily close above falling trend line resistanceat 0.7393 exposes the 38.2% Fibonacci retracement at 0.7468. Alternatively, a turn below the 14.6% Fib expansion at 0.7338 clears the way for a test of the 0.7259-82 area (July 23 low, 23.6% expansion).
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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
