To receive Ilya's analysis directly via email, please SIGN UP HERE
The Australian Dollar has turned lower against its US counterpart expected after prices showed a Shooting Star candlestick below resistance in the 0.9085, the January 13 high. Support at 0.8952, the 38.2% Fibonacci retracement, a barrier reinforced by a rising trend line set from late January. A daily close beneath this level exposes the 50% Fib at 0.8896. Alternatively, a turn above the 23.6% level at 0.9021 aims for 0.9085 anew.
Prices are too close to relevant support to justify a short position from a risk/reward perspective, while a viable reversal signal arguing in favor of a long trade is absent. We will remain on the sidelines for now until a more actionable setup presents itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com