The AUD/USD H4 – Demand might be on the increase
The AUD/USD currency pair, on the H4 time-frame, was in a down trend until the 14th of November when a lower bottom was recorded at 0.67697. Bulls then started to find the price attractive.
After the lower bottom at 0.67697 the price broke through the 15 Simple Moving Average and touched the 34 Simple Moving Average. The Momentum Oscillator pierced the zero baseline into positive territory. This confirmed a possible price reversal or initial stages of a new trend.
A probable critical resistance level formed when a higher top was recorded on the 18th of November at 0.68229. Sellers tried to pull the market lower but the price found support on the same day at 0.67735.
If the AUD/USD breaks through the critical resistance level at 0.68229, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 0.68229 and dragging it to the possible support level at 0.67735, the following targets might be calculated. The first target can be anticipated at 0.68535 (161 %). The second price target could be predicted at 0.69029 (261.8%) and the third and final target may be expected at 0.69829 (423.6%).
If the support level at 0.67735 is broken, scenario is invalidated and must be re-evaluated.
As long as buyers keep a positive attitude and demand overcomes supply, the outlook for the AUD/USD currency pair on the H4 time-frame will remain bullish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
After the lower bottom at 0.67697 the price broke through the 15 Simple Moving Average and touched the 34 Simple Moving Average. The Momentum Oscillator pierced the zero baseline into positive territory. This confirmed a possible price reversal or initial stages of a new trend.
A probable critical resistance level formed when a higher top was recorded on the 18th of November at 0.68229. Sellers tried to pull the market lower but the price found support on the same day at 0.67735.
If the AUD/USD breaks through the critical resistance level at 0.68229, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 0.68229 and dragging it to the possible support level at 0.67735, the following targets might be calculated. The first target can be anticipated at 0.68535 (161 %). The second price target could be predicted at 0.69029 (261.8%) and the third and final target may be expected at 0.69829 (423.6%).
If the support level at 0.67735 is broken, scenario is invalidated and must be re-evaluated.
As long as buyers keep a positive attitude and demand overcomes supply, the outlook for the AUD/USD currency pair on the H4 time-frame will remain bullish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.