AUD/USD Technical Analysis: Aussie Rejected at 0.77 Figure
To receive Ilya's analysis directly via email, please SIGN UP HERE
- AUD/USD Technical Strategy: Flat
- Australian Dollar recoils from resistance near 0.77, sinks to range floor
- Risk/reward considerations argue against entering short trade for now
The Australian Dollar faltered at familiar resistance near 0.77 against its US counterpart having rebounded as expected after forming a Morning Star candlestick pattern. The bounce saw a retest of broken trend line support-turned-resistance, with subsequent losses potentially marking longer-term down trend resumption.
A daily close below the 38.2% Fibonacci expansion at 0.7496 opens the door for a test of the 50% level at 0.7415. Alternatively, rebound above the 23.6% Fib at 0.7597 paves the way for another challenge of double top resistance near the 0.77 threshold.
Prices are too close to near-term support to justify entering short from a risk/reward perspective. Opting for the sidelines seems prudent for now, waiting for the pair to offer a better-defined opportunity to sell in line with the emerging bearish bias.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.