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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
AUD/USD Technical Analysis: Near-Term Trend Still Points Lower

AUD/USD Technical Analysis: Near-Term Trend Still Points Lower

Ilya Spivak, Head Strategist, APAC

AUD/USD Technical Strategy: Flat

  • Aussie Dollar in digestion mode after sinking to a three-week low
  • Near-term trend bias bearish but entering short seems premature
  • Tactical long position unattractive on risk/reward considerations

The Australian Dollar is digesting losses after hitting a three-week low against its US counterpart but the overall trend continues to favor weakness. Improving risk appetite has helped arrest selling pressure beating down the sentiment linked currency following last week’s bloodletting.

Resistance is marked by the March 22 swing high at 0.7785, with a daily close above that exposing a falling channel top at 0.7894. Immediate support is in the 0.7663-76 area (channel floor, 23.6% Fibonacci expansion).A push below that exposes a rising trend line guiding the longer-term advance from January 2016.That currently sits at 0.7608.

An actionable trade setup seems absent at this stage. Entering short seems premature absent clear-cut evidence suggesting the down move is resuming while a tactical long trade is unattractive from a risk/reward perspective given prices’ proximity to resistance. On balance, standing aside appears to be most sensible.

Join our AUD/USD strategy webinar and get ready to trade the currency pair this week!

AUD/USD Technical Analysis: Near-Term Trend Still Points Lower

AUD/USD TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivakon Twitter

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

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

DISCLOSURES