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The Australian Dollar continues to push upward against its US namesake after prices cleared stubborn resistance near the 0.93 figure. Prices are now set to test the 50% Fibonacci expansion at 0.9412, with a break above that aiming for the 61.8% level at 0.9461. Alternatively, a turn below the 38.2% Fib at 0.9363 exposes the 23.6% expansion at 0.9303.
The available trading range between near-term support and resistance is 49 pips while 20-day ATR is at 69 pips. This warns that taking a trade on either side of the market runs the danger of an adverse skew in risk/reward parameters when using a stop-loss activated on a daily closing basis (as is the case with our strategy). As such, we will remain on the sidelines.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com