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- AUD/USD Technical Strategy: Flat
- Support:0.9314, 0.9201 (23.6% Fib exp.)
- Resistance: 0.9460 (Apr 10 high), 0.9538 (channel floor)
The Australian Dollar may be carving out a double top against its US counterpart after prices put in a bearish Dark Cloud Cover candlestick pattern. The first layer of support comes in at 0.9314, with a break below that exposing the 23.6% Fibonacci expansion at 0.9201. Resistance is at 0.9460, the April 10 high, followed up the underside of a recently broken rising channel at 0.9538.
Prices are too close to near-term support to justify entering short from a risk/reward perspective. Furthermore, it seems prudent not to initiate new exposure in a USD-based or sentiment-sensitive currency pair ahead of tomorrow’s pivotal FOMC policy announcement. With that in mind, we will stand aside for now.
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Daily Chart - Created Using FXCM Marketscope 2.0