Forex Marketz Daily Forex News – Fully Markets Update
AUD/USD (0.8325)
- Resistance Levels: 0.8395, 0.85, 0.8670
- Support Levels: 0.8260, 0.8215, 0.8140
The AUD/USD has started moving higher. This was expected, and if we turn our attention to the above daily MT 4 chart we will see why. Note the formation of the morning star candlestick pattern.
Short term resistance is at a key technical level of 0.8395. This also happens to be at the 14.6 percent Fibonacci level. We need a daily close above this level for the buyers to challenge the next key handle at 0.95. Should the Ozzie reverse and move lower, we need a break below 0.8260 to challenge the technical support at 0.8215.
I know entering a long trade looks extremely tempting but we should consider a couple of facts. From a technical perspective, note the series of higher lows which has defined this bearish trend since November. This has not changed, as this pattern has not been broken. Also, the fundamental perspective does not lend its hand to a long position. Why? This is the season where we tend to see profit taking in the AUD/USD not to mention that the Reserve Bank of Australia is still not happy with the strength of the Ozzie Dollar. This could undermine any long position so, I am electing to stand aside, for now.
Trading strategies are educational and do not represent trade advice. Please do your own technical analysis to support my own conclusions before placing a trade.
