AUD/USD Technical Analysis: Early Hint at Upswing Emerges
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- AUD/USD Technical Strategy: Flat
- Australian Dollar Consolidating Ahead of 4-Month Support Above 0.69 Figure
- Early Signs of Corrective Upswing Emerge, Hinting at Pending Selling Opportunity
The Australian Dollar paused to consolidate above the 0.69 figure against its US counterpart having dropped to the lowest level in four months. Early signs of positive RSI divergence hint at ebbing downside momentum and warn that a rebound may materialize before the longer-term selloff is resumed.
Near-term support is at 0.6906, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis clearing the way for a test of the 50% level at 0.6758. Alternatively, a turn above support-turned-resistance marked by the November 10 low at 0.7016 opens the door for a challenge of the December 17 bottom at 0.7097.
The dominant AUD/USD trend continues to look bearish. With that in mind, we will treat an on-coming upswing as corrective and use the move as an opportunity to enter short in line with the long-term trajectory. In the meantime, we will remain on the sidelines.
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