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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support: 0.7417, 0.7283, 0.7150
- Resistance:0.7499, 0.7566, 0.7632
The Australian Dollar declined against its US namesake as expected after producing a bearish Three Inside Down candlestick pattern. A daily close below the 76.4% Fibonacci expansion at 0.7417exposes the 100% level at 0.7283. Alternatively, a push above the 61.8% Fib at 0.7499 clears the way for a test of the 50% expansion at 0.7566.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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