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- AUD/USD Technical Strategy: Flat
- Support: 0.9025 (23.6% Fib ret., trend line), 0.8955 (38.2% Fib ret.)
- Resistance: 0.9138 (Mar 19 high)
The Australian may be readying to turn lower against its US counterpart after an expected recovery after prices completed a Bearish Engulfing candlestick pattern. A break below support at 0.9025, marked by the 23.6% Fibonacci retracement and a rising trend line set from early January exposes the 38.2% level at 0.8955. Near-term resistance is at 0.9138, the March 19 high.
Prices are too close to relevant support to justify a short position from a risk/reward perspective. On the other hand, entering a long trade looks premature absent a defined bullish reversal signal. We will continue to stand aside for now, waiting for a more attractive setup to present itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com