AUD/USD Technical Analysis: Readying Move Above 0.75?
To receive Ilya's analysis directly via email, please SIGN UP HERE
- AUD/USD Technical Strategy: Flat
- Aussie Dollar narrowly breaks above two-week range resistance
- Waiting for actionable trade setup to re-establish short exposure
The Australian Dollar narrowly breached the top of a consolidation range in play over the past two weeks but failed to secure a foothold above 0.75 versus its US counterpart. Still, the move hints that further gains may be ahead, echoing last week’s resilience in the face of disappointing news-flow.
From here, a break above the 50% Fibonacci retracement at 0.7545 opens the door for a test of the 61.8% level at 0.7600. Alternatively, a reversal back below the 38.2% Fib at 0.7490 on a daily closing basis paves the way for a decline challenge the 14.6% Fib expansion at 0.7440.
The stop-loss on a short AUD/USD position triggered at 0.7457 was narrowly activated and the trade has been closed. Current positioning seems unattractive to re-establish exposure. Opting for the sidelines seems most prudent until an actionable opportunity to trade in line with the broadly bearish bias reemerges.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.