AUD/USD easing back down after torrid rip higher; support 0.9111

FXstreet.com (Barcelona) - The AUD/USD cross is gently pulling back (so far) towards short-term support at 0.9111 – 0.9115 after the strong, short-covering rally that took place over the last week.

AUD/USD has no data Tuesday; technical to rule the day

The AUD/USD failed to follow through to the upside Monday even as there were no data points with which to contend. Tuesday will offer a similar void of meaningful data off of which traders can base their decisions. Thus they will look to the charts for guidance.

Technical outlook for AUD/USD

Technicians point to the 23.6% Fibonacci retracement of the January to August decline in AUD/USD at 0.9226 as the next test for the cross. They anticipated a little resistance there and a mild pullback – which seems to be playing out. Support on this pullback comes in at 0.9111 – 0.9115 – the Fibonacci price projection line for short-term “correction support”. If 0.9111 fails to hold up as support, technicians say a test of the 0.9000 level is next up. Above 0.9226, the next key resistance won’t come into play until the 38.2% retracement line at 0.9488.