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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support:0.9270, 0.9239-46, 0.9207
- Resistance: 0.9310-22, 0.9369, 0.9440
The Australian Dollar turned downward against its US namesake as expected after prices put in a Bearish Engulfing candlestick pattern. Near-term support is at 0.9270, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 0.9239-46 area marked by the 50% level and a rising trend line set from early April.
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.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
original source
