AUD/USD Technical Analysis: Australian Dollar Hits 11-Week Low
To receive Ilya's analysis directly via email, please SIGN UP HERE
- AUD/USD Technical Strategy: Flat
- Australian Dollar drops to lowest in 11 weeks against its US counterpart
- Adverse risk/reward parameters argue against entering short trade for now
The Australian Dollar faces continued selling pressure, with prices dropping to the lowest level in 11 weeks against its US counterpart. The exchange rate turned downward as expected having carved out a bearish Evening Star candlestick pattern below the 0.79 figure.
Near-term support is at 0.7198, the 38.2% Fibonacci expansion, with a break below that exposing the 50% level at 0.7135. Alternatively, a reversal back above the 23.6% Fib at 0.7276 on a daily closing basis sees the next upside barrier at 0.7324, the 14.6% expansion.
The available trading range is too narrow to justify entering short in line with expected 2016 fundamental trends from a risk/reward perspective. With that in mind, opting for the sidelines seems prudent until a better-defined, actionable opportunity presents itself.
Check out the latest standings for the FXCM $10k trading contest HERE.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.