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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support: 0.7857, 0.7706, 0.7559
- Resistance:0.8058, 0.8221, 0.8384
The Australian Dollar corrected lower against its US counterpart after launching a reversal as expected. A daily close above the 38.2% Fibonacci retracement at 0.8059 exposes the 50% level at 0.8221.Alternatively, a turn below the 0.7857-0.7900 area (range top resistance-turned-support, 23.6% Fib) clears the way for a challenge of the 0.7706-33 zone (range mid-line, 14.6% retracement).
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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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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