News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Breaking news

UK to Announce Vaccine Passports and WFH Guidance in Move to Plan B

AUD/USD Technical Analysis: 15-Month Resistance Broken. Now What?

AUD/USD Technical Analysis: 15-Month Resistance Broken. Now What?

Ilya Spivak, Head Strategist, APAC

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Aussie Dollar soars to break 15-month resistance vs. US counterpart
  • Betting on upside follow-through in the near term may be premature

The Australian Dollar soared past resistance capping gains since April 2016 against its US counterpart, hinting that a lasting trend reversal may be in progress. Explosive gains followed as Fed rate hike prospects fizzled after the failure of a US healthcare reform bill backed by the White House.

From here, a daily close above the 38.2% Fibonacci expansion at 0.7979 opens the door for a challenge of the 50% level at 0.8039. Alternatively, a reversal back below the 23.6% level at 0.7904 paves the way for a retest of the April 21 high at 0.7835, now recast as support.

While the magnitude of the move higher is certainly impressive, betting on lasting follow-through does not seem particularly attractive. Worrying economic news-flow raises a red flag as the spotlight turns to domestic affairs with the release of jobs data ahead. With that in mind, the sidelines seem most attractive.

Have a question about trading AUD/USD? Join a trading Q&A webinar and ask it live!

AUD/USD Technical Analysis: 15-Month Resistance Broken. Now What?

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES