Talking Points:
- AUD/USD Technical Strategy: Flat
- Support: 0.8057, 0.7993, 0.7885
- Resistance:0.8121, 0.8200, 0.8328
The Australian Dollar moved swiftly higher against its US counterpart, producing the largest daily advance in two weeks. A daily close above the 61.8% Fibonacci expansion at 0.8121 exposes the 76.4% level at 0.8200. Alternatively, a reversal below the 50% Fib at 0.8057 clears the way for a challenge of the 38.2% expansion at 0.7993.
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.