A downward correction is likely.

On the 4-hour chart, the price broke out the levels of 0.7205 (a crossover of 61.8% Fibonacci correction and a 61.8% arc) and 0.7240 but could not consolidate above and create prerequisites for a further growth. The daily chart is more demonstrative. There, the price stuck against the 23.6% arc at the level of 0.7260. Its breakout would allow the pair to grow to 0.7370 (38.2% correction for the medium-term trend). The more likely, however, is a correction along the 23.6% arc towards 0.7195 (23.6% correction for the medium-term trend) and 0.7095 (38.2% correction for the short-term trend).

Trading tips

Sell the pair below the level of 0.7240 with targets at 0.7205, 0.7150, 0.7095 and stop-loss at 0.7260.

Alternative scenario

Long positions can be opened after the price consolidation above the level of 0.7260 with the target at 0.7370 and stop-loss at 0.7240.

AUD/USD: Fibonacci analysis

AUD/USD: Fibonacci analysis

Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.

Follow us in social networks!
Live Chat
Leave feedback