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AUD/USD Technical Strategy: Flat
Support:0.8157, 0.8089, 0.8022
Resistance:0.8240, 0.8291, 0.8375
The Australian Dollar paused to consolidate losses against its US namesake after dipping to the weakest level in over four years. Near-term support is at 0.8157, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the intersection of channel floor support and the 50% level at 0.8089. Alternatively, a reversal above 0.8240 (channel top, 23.6% Fib) opens the door for a test of the 14.6% expansion at 0.8291.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com