AUD/USD Technical Analysis: Eyeing Resistance Near 0.77 Again
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- AUD/USD Technical Strategy: Flat
- Australian Dollar eyeing resistance near 0.77 vs. USD yet again
- Opting to wait for confirmation before committing to a position
The Australian Dollar is setting its sights on a test of key resistance near 0.77 against its US namesake having found support at long-standing trend line. Still, the as-yet unbroken series of lower highs and lows since mid-August suggests the near-term bias broadly favors weakness.
A daily close above the 0.7677-97 area (38.2% Fibonacci expansion, double top) opens the door for a challenge of the 0.7749-60 zone (50% level, August 11 high). Alternatively, a reversal back below the 23.6% Fib at 0.7587 paves the way for a retest of the 14.6% expansion at 0.7532.
Positioning seems unattractive to take a trade at this point. The absence of an actionable sell signal warns that entering short in line with the near-term bias is premature. On the other hand, entering long and chasing the pair higher without clear invalidation of recent bearish tendencies seems reckless.
What do past AUD/USD price patterns hint about on-coming trends? Find out here!