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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support:0.9282, 0.9244, 0.9212
- Resistance: 0.9338, 0.9369, 0.9393-0.9401
The Australian Dollar turned higher against its US namesake as expected, with prices advancing to a three-week high. Near-term resistance is at 0.9338, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 0.9369. A further push beyond that eyes the 0.9393-0.9401 area marked by a falling channel top and the 61.8% Fib. Alternatively, a reversal below the 23.6% Fib expansion at 0.9282 opens the door for a challenge of 0.9244, the intersection of the 38.2% threshold and a rising trend line set from early April.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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