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AUD/USD Technical Analysis: Aussie Erases a Month of Losses
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Talking Points:
AUD/USD Technical Strategy: Flat
Aussie Dollar has erased a month of losses against its US cousin
Overall positioning remains bearish despite breakneck recovery
The Australian Dollar has erased a month’s-worth of losses against its US namesake since the calendar turned to 2017 and the “Trump trade” went into reverse. A break of yet another layer of near-term resistance suggests the prices are poised to probe above the 0.75 figure.
The next upside barrier comes in at 0.7542, the 61.8% Fibonacci retracement, with a breach above that confirmed on a daily closing basis opening the door for a challenge of the 76.4% level at 0.7632. Alternatively, a reversal back below the 50% Fib at 0.7469 opens the door for a retest of the 38.2% retracement at 0.7396.
On balance, longer-term positioning continues to favor a bearish bias despite the breakneck pace of recent gains. With that in mind, it seems most attractive to observe from the sidelines for now until the upswing loses steam and offers a compelling downward reversal signal.
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