DailyFX.com -

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

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Support:0.9308, 0.9282, 0.9240
  • Resistance: 0.9351, 0.9386, 0.9421

The Australian Dollar broke upward against its US namesake as expected, completing a Falling Wedge chart formation. A daily close above the 38.2% Fibonacci expansion at 0.9351 exposes the 50% level at 0.9386. Alternatively, a turn below the 23.6% Fib at 0.9308 opens the door for a challenge of the 14.6% level at 0.9282.

We will tactically opt to stand aside for now. While entering long is tempting from a technical perspective, the possibility of oncoming risk aversion after a downward reversal from the S&P 500 warns against buying the sentiment-sensitive Australian unit. Indeed, the correlation between the benchmark stock index and AUD/USD is now 0.84 (on rolling 20-day studies). With that in mind, we will continue to stand aside.

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

AUD/USD Technical Analysis: Passing on Long Trade Setup

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    AUD/USD Retail Crowd Remains Short Even as RBA Concludes Easing Cycle

  2. Forex News

    Putting USD Correction into Perspective Post-GDP, Pre-NFPs

  3. Forex News

    US Dollar Eyes Services ISM Data, Aussie Dollar Gains Despite RBA Cut

  4. Forex News

    Australian Dollar Gains Despite RBA Interest Rate Cut

  5. Forex News

    AUD/USD Technical Analysis: Waiting to Reassess After RBA

Trading Center