AUD/USD Technical Analysis: Gains Capped Below 0.80
To receive Ilya's analysis directly via email, please SIGN UP HERE
- AUD/USD Technical Strategy: Flat
- Aussie Dollar still locked in increasingly narrow range below 0.80 figure
- Clear break to the up- or down-side needed for an actionable trade setup
The Australian Dollar remains stuck in a familiar range below 0.80 against its US cousin even as the greenback struggles against most other major currencies. This disappointing performance may point to considerable underlying Aussie weakness waiting for a substantive trigger to be unleashed.
A daily close below a rising trend line set from May/June lows – now at 0.7900 – opens the door for a test of the 0.7784-0.7805 area (38.2% Fibonacci retracement, August 15 low). Alternatively, a push above the 23.6% Fib expansionat 0.7979 paves the way for a challenge of the 0.8066-87 zone (July 27 high, 38.2% level).
An actionable trade setup seems to be absent at this point. The pair’s inability to build higher and the narrowing range between near-term support and resistance argue against taking up the long side. Meanwhile, the absence of a clear bearish breakout warns that entering short is premature for now. Staying flat seems prudent.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.