AUD/USD Technical Analysis: Sharp Gains Seem Corrective
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AUD/USD Technical Analysis: Sharp Gains Seem Corrective

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Talking Points:

  • AU D/USD Technical Strategy: Flat
  • Aussie Dollar gains most in 9 months after FOMC rate decision
  • Looking for actionable signal to sell in line with long-term trend

The Australian Dollar posted the largest daily gain in nine months as its US counterpart slumped following the FOMC monetary policy announcement (as expected ). Longer-term positioning continues to appear bearish however, hinting that near-term gains are corrective.

From here, a daily close above the 38.2% Fibonacci expansion at 0.7709 opens the door for a challenge of the 0.7760-77 area (double top, 50% level). Alternatively, a turn back below the 0.7609-24 region (resistance-turned-support, 23.6% Fib) paves the way for a retest of the 14.6% expansion at 0.7572

An actionable trading opportunity is absent for now. A clear-cut bearish reversal signal is needed to enter short in line with the dominant trend. On the other hand, tactically taking up the long side is unattractive from a risk/reward perspective. Standing aside seems best until something more compelling presents itself.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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