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




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