AUD/USD Technical Analysis: Three-Month Support Broken

By DailyFx | August 07, 2014 AAA

DailyFX.com -

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

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Support:0.9181-210, 0.9082, 0.8982
  • Resistance: 0.9281, 0.9354, 0.9460

The Australian Dollar moved lower against its US namesake as expected after putting in a bearish Dark Cloud Cover candlestick pattern. A break below rising trend line support set from early may has exposed the 0.9181-0.9210 area marked by a range bottom in play since late March and the 38.2% Fibonacci retracement. Pushing further below that targets the 50% level at 0.9082. Alternatively, a reversal back above the trend line – now at 0.9281 – clears the way for a challenge of upward-sloping support-turned-resistance at 0.9354.

The available trading range is too narrow to justify a trade on the long or short side of the equation from a risk/reward perspective. We will remain flat for now, waiting for a more attractive opportunity to present itself.

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

AUD/USD Technical Analysis: Three-Month Support Broken

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. USD/JPY crashes below 106.50, more downside in store
    Forex News

    USD/JPY crashes below 106.50, more downside in store

  2. Trading Video: Is the S&P 500 Rebound, VIX Retreat a Trend or Interlude
    Forex News

    Trading Video: Is the S&P 500 Rebound, VIX Retreat a Trend or Interlude

  3. EUR/USD bulls wake up and drive pair above 1.2800
    Forex News

    EUR/USD bulls wake up and drive pair above 1.2800

  4. Strategy Video: Which is the Better Breakout Candidate - AUDUSD or EURJPY?
    Forex News

    Strategy Video: Which is the Better Breakout Candidate - AUDUSD or EURJPY?

  5. AUD/USD Range Endures With Clearer Cues From Candlesticks Desired
    Forex News

    AUD/USD Range Endures With Clearer Cues From Candlesticks Desired

Trading Center