Fiiyat

My money is on Aussie breaking further to downside!!

Short
FX:AUDUSD   Australian Dollar / U.S. Dollar
The AUD/USD has reached a significant Fibonacci level based on an ABCD extension geometrical pattern. The Fib extension was taken from the Aussie all time high at 1.1000.

Now that the D extension has been reached there are two possible outcomes (as always).

If we see a bullish engulfing weekly candle bounce from the current level then a rebound will be on the cards. I have mapped out a green DEMAND ZONE area where institutions may be likely to have long orders. By zooming into lower time frames we can see price has already bounced off this Demand zone at 0.8220 but the bears were stronger on this pair and have broken this psychological level.

My money is on further downside with my next target at 0.7900! This is a strong Demand Zone from July 2009 where there was a drop based rally confluence!