AUD/USD Technical Analysis: Looking to Sell as FOMC Looms
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- AUD/USD Technical Strategy: Flat
- Aussie Dollar moves to test key support-turned-resistance below 0.76 figure
- Looking for selling opportunity in line with long-term trend, FOMC in focus
The Australian Dollar spiked to the highest level in eight months against its US namesake, with prices attempting to set up a test of the 0.76 figure. Prices are positioned just ahead of key support-turned-resistance, with performance here defining recent gains as either corrective or the start of a larger advance.
A move above 0.7589 – a former support shelf in play from March to July 2015 – sees the layer of resistance at 0.7642, the 123.6% Fibonacci expansion. Alternatively, a daily close below the 100% level at 0.7540 paves the way for a challenge of the 76.4% expansion at 0.7438.
We remain keen on entering short AUD/USD in line with our 2016 fundamental forecast. An actionable trade setup is absent for the time being however, arguing for patience on pulling the trigger. The upcoming FOMC policy announcement may offer the catalyst for a selling opportunity to present itself.
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