AUD/USD Technical Analysis: All Eyes on Trend-Defining Support Line
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- AUD/USD Technical Strategy: Flat
- Australian Dollar remains perched at critical support, looking for direction
- Clear-cut breakout coupled with acceptable risk/reward needed for a trade
The Australian Dollar is perched at trend-defining support, with the currency yet to decide on near-term direction against its US counterpart. A series of descending highs and lows argues for a bearish near-term bias but the longer-term view warns that recent losses might have been corrective within a larger advance.
Support is in the 0.7611-25 area (October 27 low, 23.6% Fibonacci expansion), with a daily close below that exposing the 38.2% level at 0.7538 and arguing for a structural tone shift in favor of the downside. Alternatively, a breach of the 23.6% Fib retracement at 0.7743 targets the 38.2% mark at 0.7816.
Current positioning is inconclusive, with prices bumping around in a choppy range. A definitive break of immediate support or resistance is needed to make for an actionable setup technically, at which point risk/reward parameters can be assessed in search of a trade. In the meantime, staying flat seems prudent.
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