The Ozzie Dollar Finds Some Support below 0.85

AUD/USD (0.8590)

• Resistance Levels: 0.8590, 0.8670, 0.88795
• Support Levels: 0.8465, 0.8365, 0.8262

The corrective fall lower for the AUD/USD Forex pair has stalled just below the key technical level of 0.85. Please see the above MT 4 daily chart.

We need to close below 0.8465 in order to challenge 0.8365. The alternative view is simple. A break above the congestion area that runs from 0.8551 to 0.8590 is needed for the Ozzie to challenge the key technical handle at 0.8670. I should point out there is another congestion zone running from 0.8660 ending at 0.8670. This could prove to be a formidable area to crack.

Let’s look at some trading strategy. We are trading at a resistance level now. Entering a long trade at this price level makes little sense form a risk to reward perspective. I also do not see any bearish reversal signs to warrant making a short trade. I am sitting on the sidelines waiting for a clearer signal to emerge.

As always, Forex trading strategies are educational in nature. They do not constitute trading advice. Always do your own technical analysis to support my conclusions before making a trade.