Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
AUD/USD Technical Analysis: Support Now Below 0.71 Mark

AUD/USD Technical Analysis: Support Now Below 0.71 Mark

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Aussie Support Now Below 0.71 vs. US Counterpart as Down Move Regains Momentum
  • Tactically Passing on Short Trade for Now as FOMC Policy Announcement Looms Ahead

The Australian Dollar accelerated downward anew after brief period of consolidation above the 0.72 figure against its US counterpart. Prices established a top and turned lower as expected having produced a bearish Evening Star candlestick pattern.

The next layer of support is 0.7086, the intersection of a rising trend line guiding the move higher since early September and the 23.6% Fibonacci expansion. A break below this barrier on a daily closing basis opens the door for a test of the 38.2% level at 0.6903. Alternatively, a move back above the 14.6% expansion at 0.7199 – now recast as resistance – clears the way for a challenge of the 38.2% Fib retracement at 0.7387.

While one layer of event risk has passed with Australia’s CPI data, the upcoming FOMC policy announcement remains a critical source of uncertainty in the hours ahead. It seems tactically ill-advised to commit to a directional bias prior to such a key inflection point, especially since we are already holding long-USD exposure elsewhere. With that in mind, we will remain flat and monitor developments for a selling opportunity.

Losing Money Trading Forex? This Might Be Why.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.