DailyFX.com -

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

• AUD/USD Technical Strategy: Flat

• Support:0.7715, 0.7638, 0.7469

• Resistance:0.7899, 0.8069, 0.8343

The Australian Dollar may be readying to resume the down trend against its US counterpart after putting in a Bearish Engulfing candlestick pattern. Near-term range support is at 0.7715, with a break below that on a daily closing basis exposing the 14.6% Fibonacci expansion at 0.7638. Alternatively, a push above the intersection of trend line resistance and the 14.6% Fib retracement at 0.7899 clears the way for a challenge of the 23.6% threshold at 0.8069.

While entering short seems compelling from a purely technical perspective, we will tactically opt to stand aside for now. Priced-in expectations ahead of next week’s RBA monetary policy announcement see investors split 50/50 on the probability of another rate cut, seemingly assuring volatility that threatens to derail existing positioning. With that in mind, we will wait for event risk to pass before committing to a directional bias.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

Daily Chart - Created Using FXCM Marketscope

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

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.