Strategy: Pending Short
AUDUSD took out support at 0.9991, the 76.4% Fibonacci expansion reinforced by a falling trend line support in place from early February. While this seemingly points to bearish acceleration, we are reluctant to chase prices down here with support relatively nearby in the 0.9844-0.9894 area and relative strength readings at their most oversold since October (when they marked a meaningful reversal). With that in mind, we will begrudgingly opt to remain on the sidelines for now.
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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