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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support:0.9223-45, 0.9085, 0.8955
- Resistance: 0.9324-44, 0.9460, 0.9504
The Australian Dollar is accelerating lower as expected against its US counterpart after putting in a bearish Dark Cloud Cover candlestick pattern. A daily close below support in the 0.9223-45 area, a range bottom in play since late March and the 23.6% Fibonacci expansion, initially exposes the 38.2% level at 0.9085. Alternatively, a turn above the 0.9324-44 zone bracketed by a horizontal pivot and the 14.6% Fib clears the way for a test of the April 10 high at 0.9460.
We are tactically opting to stand aside for now because we already hold long USD exposure against the Euro and the Canadian Dollar. As such, we think it best not to over-commit as heavy-duty US event risk continues cross the wires through the week-end.
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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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