AUD/USD Digests Losses Below 0.73
- AUD/USD Technical Strategy: Flat
- Support: 0.7251, 0.7129, 0.7031
- Resistance: 0.7326, 0.7448, 0.7508
The Australian dollar paused to digest losses after declining to a six-year low against its US namesake. A daily close below the 23.6% Fibonacci expansion at 0.7251 exposes the 38.2% level at 0.7129. Alternatively, a turn above the 14.6% Fib at 0.7326 clears the way for a test of the July 21st high at 0.7448.
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, waiting for an actionable opportunity to present itself.
AUD/USD Daily Chart