AUD/USD Technical Analysis: Aussie Rebound Hinted Ahead

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Talking Points:

  • AUD/USD Technical Strategy: Flat

  • Support:0.8020, 0.7900, 0.7803

  • Resistance:0.8094, 0.8214, 0.8285

The Australian Dollar may be preparing to turn higher against its US namesake after putting in a Hammer candlestick coupled with positive RSI divergence. Near-term resistance is at 0.8094, the 14.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the December 31 highat 0.8214. Alternatively, a reversal below the 23.6% level at 0.8020 opens the door for a test of the 38.2% Fib at 0.8012.

The available trading range is too narrow to justify a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain on the sidelines for now and wait for a more actionable opportunity to present itself.

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AUD/USD Technical Analysis: Aussie Rebound Hinted Ahead
AUD/USD Technical Analysis: Aussie Rebound Hinted Ahead

Daily Chart - Created Using FXCM Marketscope

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


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