AUD/USD Technical Analysis: Choppy Consolidation Continues
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- AUD/USD Technical Strategy: Flat
- Australian Dollar remains stuck in choppy consolidation range
- Looking for actionable trading opportunity to establish exposure
The Australian Dollar continues to oscillate in a choppy trading range below the 0.78 figure against its US counterpart. Prices have struggled to find lasting follow-through for nearly three months but an increasingly narrow opening between near-term support and resistance levels may soon force a breakout.
A daily close above the August 11 high at 0.7760 opens the door for a test of the April 21 top at 0.7835. Alternatively, break below rising trend line support set from mid-January – now at 0.7540 – paves the way for a challenge of double bottom support at 0.7443.
An actionable trade setup appears to be absent at this time. On one hand, prices are too close to resistance to justify entering long from a risk/reward perspective. On the other, the absence of a clear-cut bearish reversal signal suggests that taking up the long side is premature. Opting for the sidelines seems most prudent.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.