Hey Traders!
The AUD/USD trend remains heavily bearish, considering the recent fast drop in price and lower lows/lower highs pattern. Pair went from 0.7243 high down to 0.7056 low in just 4 trading days, resulting in a 186 pips loss. Currently, the price has corrected down and rejected the previously established support, which right now is acting as the resistance.
Fibonacci applied to the corrective wave up, to the point where previous resistance has been established at 0.7233, shows that 627.2% Fibs has been rejected precisely, suggesting the validity of the selling pressure and goes to show that bears are defending this level.
As long as 1h and/or 4h closing prices remain below 0.7100 psychological resistance, AUD/USD is expected to continue trending down. The next stop could be at 0.7024, which is the support confirmed by two Fibonacci retracement levels. The first being the 961.8% and the second is 23.6% Fibs applied to the last wave down when AUD/USD bottomed out back in September.
Thanks for your support and smash the 👍 if you agree with this idea.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
The AUD/USD trend remains heavily bearish, considering the recent fast drop in price and lower lows/lower highs pattern. Pair went from 0.7243 high down to 0.7056 low in just 4 trading days, resulting in a 186 pips loss. Currently, the price has corrected down and rejected the previously established support, which right now is acting as the resistance.
Fibonacci applied to the corrective wave up, to the point where previous resistance has been established at 0.7233, shows that 627.2% Fibs has been rejected precisely, suggesting the validity of the selling pressure and goes to show that bears are defending this level.
As long as 1h and/or 4h closing prices remain below 0.7100 psychological resistance, AUD/USD is expected to continue trending down. The next stop could be at 0.7024, which is the support confirmed by two Fibonacci retracement levels. The first being the 961.8% and the second is 23.6% Fibs applied to the last wave down when AUD/USD bottomed out back in September.
Thanks for your support and smash the 👍 if you agree with this idea.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
Key resistance levels: 0.70