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Talking Points:

• AUD/USD Technical Strategy: Flat

• Support:0.8659, 0.8568, 0.8466

• Resistance:0.8887, 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 support-turned-resistance is at 0.8887, the March 2014 low, with a break above that on a daily closing basis exposing the 38.2% Fibonacci retracement 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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