AUD/USD Technical Analysis: 2017 Uptrend Under Fire
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- AUD/USD Technical Strategy: Flat
- Aussie Dollar sellers are challenging support defining the 2017 rising trend
- Clear-cut break or bullish reversal signal needed for actionable trade setup
The Australian Dollar is attempting to break lower against its US counterpart, with prices menacing support that has led them higher since late December 2016. The currency stalled at trend line support-turned-resistance set from April 2016 for nearly three weeks but now seems to be trying to break that deadlock.
Support is in the 0.7594-0.7625 area (trend line, October 27 low, 23.6% Fibonacci expansion). A daily close below that sees the next downside threshold at 0.7538, the 38.2% level. Alternatively, a bounce above the 23.6% Fib retracement at 0.7743 opens the door for a test of the 38.2% retracement at 0.7816.
Current positioning is inconclusive, with neither a break of trend support nor a clear-cut bullish reversal signal available to make for an actionable trade setup. Standing aside seems prudent for now as the currency pair figures out the path of least resistance.
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