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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support:0.8659, 0.8568, 0.8466
- Resistance:0.8845, 0.8971, 0.9073
The Australian Dollar remains range-bound as prices struggle to make good on a bullish Piercing Line candlestick pattern. Near-term resistance is at 0.8845, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 0.8971. Alternatively, a turn below the 0.8659-94 area marked by the January 2014 low and the 23.6% Fib expansion clears the way for a test of the 38.2% threshold at 0.8568.
Positioning is inconclusive at this point. On one hand, the bottoming implications of the Piercing Line pattern remain intact. On the other, follow-through has been noticeably absent, casting doubt on the signal’s potency. We will remain flat for now until greater clarity emerges.
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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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