DailyFX.com -

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

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Support:0.9286, 0.9223-45, 0.9085
  • Resistance: 0.9324-44, 0.9460, 0.9504

The Australian Dollar moved lower against its US namesake as expected after putting in a bearish Dark Cloud Cover candlestick pattern. Prices are testing support at 0.9286, the floor of a rising channel that has guided the pair since April. A daily close below this barrier exposes the 0.9223-45 area marked by a range bottom set from March and the 23.6% Fibonacci expansion. Alternatively, reversing above the 0.9324-44 zone bracketed by a horizontal pivot and the 14.6% level opens the door for a challenge of the April 10 high at 0.9460.

Positioning looks inconclusive at this point. The Dark Cloud Cover pattern and subsequent losses argue for a top in place near 0.95, but the outlines of the advance May’s lows remain intact and a Morning Star pattern warns a bounce may be ahead. We will stand aside for now, waiting for greater clarity to emerge.

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

AUD/USD Technical Analysis: Torn Between Conflicting Cues

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

Related Forex Analysis
  1. Forex News

    Video: AUDUSD, GBPUSD and USDJPY Better Trade Options Than EURUSD

  2. Forex News

    Greece Referendum Makes for Big Headlines, Difficult Trading

  3. Forex News

    What to Expect From the Greek Referendum

  4. Forex News

    Global Equity Markets Look Unsettled, China Is Tumbling

  5. Forex News

    EUR/USD looks to Greece for direction

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!