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Talking Points:
- AUD/USD Technical Strategy: Flat
- Aussie Dollar continues to mark time within a narrowing range
- Waiting for clear-cut direction cues to establish open exposure
The Australian Dollar may be coiling up for a breakout against its US namesake as prices oscillate in an increasingly narrow range below the 0.78 figure. Sideways consolidation often precedes continuation, implying a bearish bias considering the standstill is occurring within the context of a multi-year down trend.
Trend line support comes in at 0.7575, with a break below that on a daily closing basis broadly exposing a double bottom at 0.7443. Alternatively, a push above downward-sloping resistance at 0.7711 paves the way for a challenge of the August 11 high at 0.7760.
On one hand, prices are too close to near-term resistance to justify a long position from a risk/reward perspective. On the other, the absence of a clearly defined bearish reversal signal warns that it is premature to take up the short side. Remaining on the sidelines seems most prudent for now.
What do past AUD/USD price patterns hint about on-coming trends? Find out here !
