AUD/USD Technical Analysis: Aussie Taking Aim at 0.80 Figure
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AUD/USD Technical Strategy: Flat
- Australian Dollar recovery continues, with prices now aiming at the 0.80 figure
- Longer-term positioning continues to be defined by a double top set above 0.81
- Adverse risk/reward parameters argue against entering a tactical long position
The Australian Dollar continues to make headway against its US counterpart, with prices now poised to challenge resistance at the 0.80 figure. The pair launched upward after producing a bullish Piercing Line candlestick. Still, the double top set above 0.81 and the subsequent bearish breakout are in force.
Near-term resistance is at 0.9002, the 38.2% Fibonacci expansion, with a break above that on daily closing basis opening the door for a test of the 50% level at 0.8076. Alternatively, a reversal back below the 23.6% Fib at 0.7909 opens the door for another challenge of the 14.6% expansion at 0.7852.
While a tactical long position is certainly tempting, structuring a trade with acceptable risk/reward parameters looks challenging at current levels. With that in mind, opting to remain on the sidelines until a better-defined opportunity presents itself seems to be the most sensible choice for the time being.
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