Skip to Content
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.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
AUD/USD Technical Analysis: All Eyes on Trend-Defining Support

AUD/USD Technical Analysis: All Eyes on Trend-Defining Support

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

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Australian Dollar looking for direction at trend-defining support level
  • Inconclusive chart positioning argues against taking a trade for now

The Australian Dollar has dropped to a four-month low against its US counterpart but sellers are struggling to make continued progress having met critical chart support. A rebound here might be the first step toward showing that losses since early September are corrective in the context of a longer-term advance.

Critical support is at 0.7655 (61.8% Fibonacci expansion, former trend line resistance set from April 2016). Breaching this would invalidate July’s upside breakout, initially exposing the 76.4% level at 0.7598. Alternatively, a close above the 50% Fib at 0.7702 targets the 38.2% expansion at 0.7748.

An actionable trade setup seems to be absent. Prices are probing above range resistance but confirmation of a break is absent, arguing against taking up the long side. Entering short appears to be likewise unattractive absent clear-cut evidence of bearish conviction. Opting for the sidelines is probably best for now.

What do retail traders’ buy/sell decisions hint about coming AUD/USD moves? Find out here !

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

DISCLOSURES