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: Aussie Taking Aim at 0.80 Figure

AUD/USD Technical Analysis: Aussie Taking Aim at 0.80 Figure

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

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.

Find out here what the #1 mistake that traders make is and how you can fix it!

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

DISCLOSURES