AUD/USD D1 – More buyers are entering the market
The AUD/USD currency pair, on the D1 time-frame, was in a downward move until the 2nd of October when a lower bottom was recorded at 0.66710. Demand then started to overcome supply.
After the lower bottom at 0.66710 the price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator broke through the zero baseline into bullish terrain. This confirmed a possible price reversal or initial stages of a new trend.
A likely critical resistance level formed when a higher top was recorded on the 11th of October at 0.68099. Sellers tried to pull the market lower but the price found support on the 16th of October at 0.67243 and this was confirmed by a Hammer Candle that formed at the pullback.
On the 17th of October AUD/USD broke through the critical resistance level at 0.68099 and a long position was triggered. Three possible price targets were projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 0. 68099 and dragging it to the possible support level at 0.67243, the following targets can be calculated. The first target is anticipated at 0.68628 (161 %). The second price target can be predicted at 0.69485 (261.8%) and the third and final target may be expected at 0.70871 (423.6%).
If the support level at 0. 67243 is broken, the long position must be liquidated to protect trading capital and new scenarios must be re-evaluated.
As long as buyers maintain a positive attitude and demand overcomes supply, the outlook for the AUD/USD currency pair on the D1 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 0.66710 the price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator broke through the zero baseline into bullish terrain. This confirmed a possible price reversal or initial stages of a new trend.
A likely critical resistance level formed when a higher top was recorded on the 11th of October at 0.68099. Sellers tried to pull the market lower but the price found support on the 16th of October at 0.67243 and this was confirmed by a Hammer Candle that formed at the pullback.
On the 17th of October AUD/USD broke through the critical resistance level at 0.68099 and a long position was triggered. Three possible price targets were projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 0. 68099 and dragging it to the possible support level at 0.67243, the following targets can be calculated. The first target is anticipated at 0.68628 (161 %). The second price target can be predicted at 0.69485 (261.8%) and the third and final target may be expected at 0.70871 (423.6%).
If the support level at 0. 67243 is broken, the long position must be liquidated to protect trading capital and new scenarios must be re-evaluated.
As long as buyers maintain a positive attitude and demand overcomes supply, the outlook for the AUD/USD currency pair on the D1 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.