A decline might continue.

On the 4-hour chart, the price has started moving down along the 61.8% fan line. Thus, the first target will be the level of 0.7204 (38.2% correction) the breakdown of which leads to a decline to 0.7170 (23.6% correction) and 0.7117 (0.0% correction). If the price breaks out the level of 0.7230 (50.0% correction), upward movement might resume towards 0.7257 (61.8% correction) and 0.7300.

On the daily chart, the pair is trading in the area of 0.7225 (38.2% correction) which is seen as the key level. The breakdown of this level leads to a decline to 0.7110 (23.6% correction); otherwise, its breakout would allow the pair to grow to 0.7325 (50.0% correction).

Trading tips

Short positions can be opened from the level of 0.7200 with targets at 0.7170, 0.7117 and stop-loss at 0.7225.

Alternative scenario

Long positions would become valid after the consolidation above the level of 0.7230 with targets at 0.7257, 0.7300 and stop-loss at 0.7200.

AUD/USD: Fibonacci analysis

AUD/USD: Fibonacci analysis

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