On the daily price chart of the AUDUSD pair, the current price trend has no clear direction. The current price fluctuation is between 0.6400, as the trough, and up to the limit of 0.6650, as the peak. The downward path of currency pair prices, which has started since the beginning of 2021, has been maintained to date and has shown no signs of recovery. The indecision, which is evident through the sideways movement observed in recent months, which takes place in the upper band of the main trend channel, brings signs of differentiation of price behavior from their primary trend so far.
We then apply the Fibonacci sequence to the last bearish movement and in particular the Fibonacci Retracement tool to identify critical price levels that can help us understand price development. We observe that the price of the currency pair is unable to break through the 50% upper limit as well as the lower limit of the Fibonacci Retracement base. If price moves between 38.2% and 50%, it is difficult to draw conclusions about the path that can be followed. Two important price levels that have been created are 0.66454 and 0.64502. The upside break of the first level can be considered a first step for further price rise. On the other hand, the breakdown of the second price level can be seen as a continuation of the downward movement that already exists.
We then apply the Fibonacci sequence to the last bearish movement and in particular the Fibonacci Retracement tool to identify critical price levels that can help us understand price development. We observe that the price of the currency pair is unable to break through the 50% upper limit as well as the lower limit of the Fibonacci Retracement base. If price moves between 38.2% and 50%, it is difficult to draw conclusions about the path that can be followed. Two important price levels that have been created are 0.66454 and 0.64502. The upside break of the first level can be considered a first step for further price rise. On the other hand, the breakdown of the second price level can be seen as a continuation of the downward movement that already exists.