AUD/USD Technical Analysis: Rebound Fizzles Near 0.72 Mark
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- AUD/USD Technical Strategy: Flat
- Upside Correction Loses Steam as Aussie Dollar Awaits Key Event Risk Looming Ahead
- Looking for Actionable Trade Signal to Enter Short in Line with Dominant Down Trend
The Australian Dollar is treading water having bounced as expected against its US counterpart, waiting for direction cues from key event risk by way of US employment data. Prices moved higher as expected after putting in a Bullish Engulfing candlestick pattern but momentum has fizzled, with ATR-based volatility readings dropping to the lowest level in 10 months.
Near-term trend line support is now at 0.7091, with a break below that on a daily closing basis initially clearing the way for a test of the 38.2% Fibonacci expansion at 0.6902. Alternatively, a push above support-turned-resistance at 0.7199 sees the next upside barrier at 0.7387, the 38.2% Fib retracement.
Positioning is inconclusive at this point, with prices offering no clear-cut directional signal for a trade setup. The dominant longer-term trend continues to favor the downside however. With that said, we will remain on the sidelines and wait for the pair to offer a compelling selling opportunity.
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