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Talking Points:
- AUD/USD Technical Strategy: Flat
- Australian Dollar recovery continues as prices extend to one-month high
- Looking for signs of topping at critical resistance to enter short position
The Australian Dollar continues to press upward against its US namesake, with prices rising to the highest level in a month. The pair is now testing critical trend line resistance capping gains since early December and defining the Aussie’s near-term down trend.
A daily close above the 76.4% Fibonacci retracement at 0.7254 paves the way for a test of the December 31 swing high at 0.7327. Alternatively, a reversal below the 61.8% Fib at 0.7172 opens the door for a challenge of the 50% retracement at 0.7106.
Our 2016 fundamental outlook calls for the dominant multi-year AUD/USD down trend to continue. With that in mind, we will monitor prices’ behavior for signs signaling that the corrective upswing has run its course and position to enter short once an actionable opportunity presents itself.
Losing money trading the Australian Dollar? This might be why.
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