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Talking Points:
- AUD/USD Technical Strategy: Flat
- Aussie Dollar looks uneasy at the highest in over 3 month vs US namesake
- Confirmation of reversal needed to make for actionable short trade setup
The Australian Dollar rose to the highest level in over three months against its US counterpart but chart positioning warns that a turn lower may be ahead. Negative RSI divergence suggests that upside momentum may be fading, which may precede the formation of a top below the 0.79 figure.
From here, a daily close below the 38.2% Fibonacci expansion at 0.7806 opens the door for a retest of the 23.6% level at 0.7690. Alternatively, a push above the 50% Fib at 0.7900 paves the way for a challenge of the 61.8% expansion at 0.7994.
Final profit has been booked on the long AUD/USD position activated at 0.7666. Current positioning does not offer an actionable trade setup just yet. RSI divergence is not sufficient to trigger a short position without further confirmation. Standing aside seems prudent until a better-defined opportunity presents itself.
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