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The Australian Dollar continued to advance for a third consecutive day against its US namesake hitting the highest level in five months. Buyers are now testing the 50% Fibonacci expansion at 0.9412, with a break above that on a daily closing basis exposing for the 61.8% level at 0.9461. Alternatively, a reversal below the 38.2% Fib at 0.9363 targets the 23.6% expansion at 0.9303.
The available range between near-term support and resistance is too narrow to make for an attractive trade setup for a strategy using a stop-loss activated on a daily closing basis (as is the case for our approach) given a 20-day ATR reading of 70. We will remain on the flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com