Advertisement
Singapore markets closed

  • Straits Times Index

    3,176.51
    -11.15 (-0.35%)
     

  • Nikkei

    37,068.35
    -1,011.35 (-2.66%)
     

  • Hang Seng

    16,224.14
    -161.73 (-0.99%)
     

  • FTSE 100

    7,895.85
    +18.80 (+0.24%)
     

  • Bitcoin USD

    64,227.00
    +783.50 (+1.23%)
     

  • CMC Crypto 200

    1,378.41
    +65.79 (+5.01%)
     

  • S&P 500

    4,988.11
    -23.01 (-0.46%)
     

  • Dow

    38,014.15
    +238.77 (+0.63%)
     

  • Nasdaq

    15,391.89
    -209.61 (-1.34%)
     

  • Gold

    2,411.90
    +13.90 (+0.58%)
     

  • Crude Oil

    83.45
    +0.72 (+0.87%)
     

  • 10-Yr Bond

    4.6230
    -0.0240 (-0.52%)
     

  • FTSE Bursa Malaysia

    1,547.57
    +2.81 (+0.18%)
     

  • Jakarta Composite Index

    7,087.32
    -79.50 (-1.11%)
     

  • PSE Index

    6,443.00
    -80.19 (-1.23%)
     

AUD/USD Technical Analysis: Passing on Short Trade Setup

Ilya Spivak

DailyFX.com -

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

Talking Points:

  • AUD/USD Technical Strategy: Flat

  • Support:0.7715, 0.7638, 0.7469

  • Resistance:0.7899, 0.8069, 0.8343

The Australian Dollar may be readying to resume the down trend against its US counterpart after putting in a Bearish Engulfing candlestick pattern. Near-term range support is at 0.7715, with a break below that on a daily closing basis exposing the 14.6% Fibonacci expansion at 0.7638. Alternatively, a push above the intersection of trend line resistance and the 14.6% Fib retracement at 0.7899 clears the way for a challenge of the 23.6% threshold at 0.8069.

ADVERTISEMENT

While entering short seems compelling from a purely technical perspective, we will tactically opt to stand aside for now. Priced-in expectations ahead of next week’s RBA monetary policy announcement see investors split 50/50 on the probability of another rate cut, seemingly assuring volatility that threatens to derail existing positioning. With that in mind, we will wait for event risk to pass before committing to a directional bias.

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

AUD/USD Technical Analysis: Passing on Short Trade Setup
AUD/USD Technical Analysis: Passing on Short Trade Setup

Daily Chart - Created Using FXCM Marketscope

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


original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.