DailyFX.com -

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

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Support:0.9310-18, 0.9270, 0.9239-45
  • Resistance: 0.9369, 0.9401, 0.9440

The Australian Dollar may be preparing to reverse downward against its US counterpart following the appearance of a Bearish Engulfing candlestick formation. A daily close below the 0.9310-18 area marked by a rising trend line support set from late August at and the 23.6% Fibonacci expansion exposes the 38.2% level at 0.9270. Alternatively, a turn above the intersection of the 50% Fib retracement and a falling channel top at 0.9369 clears the way for a test of the 61.8% threshold at 0.9401.

Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. With that in mind we will remain flat for now.

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

AUD/USD Technical Analysis: Bearish Turn Signal Emerges

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Trade Setups in USD-pairs Around June US NFPs

  2. Forex News

    US Dollar May Rise on Jobs Data, NZ Dollar Drops on Dairy Slump

  3. Forex News

    AUD/USD Technical Analysis: Support Sub-0.76 Back in Focus

  4. Forex News

    USD/CAD on Cusp of Breakout as EUR/USD Retreats

  5. Forex News

    AUD/USD Technical Analysis: Drifting Toward Range Top

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!