DailyFX.com -

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

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Support: 0.7251, 0.7129, 0.7031
  • Resistance:0.7326, 0.7448, 0.7508

The Australian Dollar paused to digest losses after declining to a six-year low against itsUS namesake. A daily close below the 23.6% Fibonacci expansionat 0.7251 exposes the 38.2% level at 0.7129. Alternatively, a turn above the 14.6% Fib at 0.7326 clears the way for a test of the July 21 high at 0.7448.

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.

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

AUD/USD Technical Analysis: Digesting Loses Below 0.73

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com


original source