AUD/USD Technical Analysis: Longest Win Streak in 2 Years
To receive Ilya's analysis directly via email, please SIGN UP HERE
- AUD/USD Technical Strategy: Flat
- Aussie Dollar Puts in Longest Winning Streak in Two Years vs. US Counterpart
- Looking to Enter Short in Line with Dominant Trend After Upswing is Exhausted
The Australian Dollar continued to push higher for a seventh consecutive day against its US counterpart, making for the longest winning streak in two years. Prices are now testing the underside of a consolidation range broken in late August as buyers attempt to clear a path above the 0.73 figure.
A daily close above range floor support-turned-resistance at 0.7259 opens the door for a challenge of the 0.7387-0.7438 area, marked by the 38.2% Fibonacci retracement and the August 11 high. Alternatively, a move back below the 23.6% level at 0.7204 clears the way for a test of the 14.6% Fib at 0.7091.
Risk/reward considerations argue against taking up a trade at current levels. Prices are too close to resistance to make for an attractive long trade while the absence of a defined bearish reversal signal argues against taking up the short side. On balance, the long-term trend remains bearish and we will look for the upswing to yield a selling opportunity to become involved.
Losing Money Trading Forex? This is Probably Why!
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.