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Talking Points:

• AUD/USD Technical Strategy: Flat

• Support: 0.7323, 0.7234, 0.7145

• Resistance:0.7379, 0.7420, 0.7468

The Australian Dollar launched upward against its US namesake as expected after putting in a bullish Morning Star candlestick pattern. A daily close above the 23.6% Fibonacci retracementat 0.7379 exposes a falling trend line at 0.7420. Alternatively, a turn below the 14.6% level at 0.7323 clears the way for a test of the July 31 low at 0.7234.

Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.

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

original source

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