DailyFX.com -

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

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Support:0.9305, 0.9223, 0.9181
  • Resistance: 0.9422, 0.9507, 0.9602

The Australian Dollar turned downward against its US counterpart as expected after the pair produced a Dark Cloud Cover candlestick pattern. Support lines up in the 0.9305-24 area, marked by a horizontal pivot in play since March and the 23.6% Fibonacci retracement. A break below that on a daily closing basis exposes the 0.9181-223 zone, bracketed by a range bottom and the 38.2% level. Alternatively, a reversal above support-turned-resistance at 0.9422 opens the door for a test of the 38.2% Fib expansion at 0.9507.

Risk/reward considerations argue against entering short with prices sitting in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

AUD/USD Technical Analysis – Buyers Retreat from 0.95

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Dollar Forecast Improves, Indicator Shows it May Rally Across the Board

  2. Forex News

    US Dollar Rally Stalls as Q2’15 US GDP Brings Mixed Bag

  3. Forex News

    USDOLLAR Index Consolidates in Bull Flag Post-FOMC

  4. Forex News

    AUD/USD Technical Analysis: Upturn Confirmation Pending

  5. Forex News

    Fed Doesn’t Relieve Anxiety, GDP Will Take Shot at Dollar and Equities

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!