Tuesday, February 4, 2014

Forex: AUD/USD Technical Analysis ? Attempting to Expose 0.90




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



Talking Points:



  • AUD/USD Technical Strategy: Flat


  • Support: 0.8819 (14.6% Fib ret.), 0.8659 (Jan 24 low)


  • Resistance: 0.8918 (23.6% Fib ret., trend line), 0.9079 (38.2% Fib ret.)


The Australian Dollar rallied as expected after putting in a bullish Piercing Line candlestick pattern. Prices are now testing resistance at 0.8918, the intersection of the 23.6% Fibonacci retracement and a formerly broken rising trend line. A break upward initially targets the 38.2% level at 0.9079. Alternatively, a reversal below the 14.6% Fib at 0.8819 aims for the January 24 low at 0.8659.



Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, a short trade seems premature absent a clear-cut reversal signal. We will remain on the sidelines for the time being, waiting for an actionable setup to present itself.



Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!


dailyclassics_aud-usd_body_Picture_12.png, Forex: AUD/USD Technical Analysis – Attempting to Expose 0.90


Daily Chart – Created Using FXCM Marketscope 2.0



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





Forex: AUD/USD Technical Analysis ? Attempting to Expose 0.90

No comments:

Post a Comment