AUD/USD Technical Analysis: Aussie Dips to Six-Year Low
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- AUD/USD Technical Strategy: Flat
- Support: 0.7219, 0.7083, 0.6974
- Resistance:0.7303, 0.7453, 0.7589
The Australian Dollar dipped to the lowest level in over six years in the wake of China’s second Yuan devaluation in two days. Near-term support is at 0.7219, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 0.7083. Alternatively, a move above the 14.6% Fib at 0.7303 opens the door for a test of the 23.6% Fib retracement at 0.7453.
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