Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
AUD/USD Technical Analysis: Pivotal Resistance Back in Play

AUD/USD Technical Analysis: Pivotal Resistance Back in Play

Ilya Spivak,

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Aussie Dollar testing resistance capping the upside since late June
  • Inconclusive positioning, adverse risk/rewardsetup call for patience

The Australian Dollar is testing familiar resistance above the 0.76 threshold against its US counterpart after prices found support above the 0.74 figure. The pair has been capped here since late June, with a sustained upward push this time around threatening April’s swing top.

A daily close above the 50% Fibonacci expansion at 0.7649 clears the way for a challenge of the 61.8% level at 0.7768, a barrier reinforced by the April 21 high at 0.7835. Alternatively, a reversal back below the 38.2% Fib at 0.7530 opens the door for a retest of the July 27 low at 0.7421.

Entering short seems premature despite the presence of significant resistance absent a tangible bearish reversal signal. On the other hand, taking up the long side is unattractive from a risk/reward perspective. With that in mind, opting for the sidelines seems most prudent until something more compelling emerges.

Losing money trading AUD/USD? This may be why.

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

DISCLOSURES