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AUD/USD Technical Analysis: Aussie Narrowly Exposes 0.73

AUD/USD Technical Analysis: Aussie Narrowly Exposes 0.73

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Aussie Dollar soars, then gives up most gains on upbeat 1Q GDP data
  • New short entry setup sought after open trade narrowly triggers stop-loss

The Australian Dollar surged upward against its US namesake after an unexpectedly strong set of first-quarter GDP figures weighed against RBA rate cut bets. While the pair gave up most of its intraday advance, a narrow break of near-term resistance hints some further gains may be ahead.

From here, a daily close above the 23.6% Fibonacci retracement at 0.7308 opens the door for a test of the 38.2% level at 0.7409. Alternatively, a reversal back below the 14.6% Fib at 0.7246 paves the way for another test of the May 24 low at 0.7145.

The short AUD/USD trade triggered at 0.7187 was narrowly stopped out on daily close above 0.7243. The Aussie’s inability to maintain upward momentum despite a strong fundamental jolt speaks to significant underlying weakness and another opportunity to sell the pair will be sought in the days ahead.

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

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