Looking at this pair the AUD/USD price is consolidating in a key area between the 50% level on a Fibonacci retracement with highs dating back to 2018 (0.8000) and low (0.5800) March 2020. Fibonacci levels match up almost seamlessly with previous highs that have been tested and retested multiples times which can easily be seen on the highers time frames.
One noticeable price level (0.7000) when drawing a fibonacci extension tool from the low in march against smaller retracements on the daily time matches almost seamlessly as well with the 1.618.
A retracement is expected based on these critical levels, however these zones serves as price action zones which means price can either bounce off these level or breakthrough them into a full time bullish trend. Therefore a keen eye should be kept on previous highs and also the 50% and 61.80% for a continuation trend.
For the SHORT trade if price continues to trend, break and close below the 50% level target profit 1 can be set at 0.68500 and a riskier profit would be around the bottom of the weekly support (0.97500).
One noticeable price level (0.7000) when drawing a fibonacci extension tool from the low in march against smaller retracements on the daily time matches almost seamlessly as well with the 1.618.
A retracement is expected based on these critical levels, however these zones serves as price action zones which means price can either bounce off these level or breakthrough them into a full time bullish trend. Therefore a keen eye should be kept on previous highs and also the 50% and 61.80% for a continuation trend.
For the SHORT trade if price continues to trend, break and close below the 50% level target profit 1 can be set at 0.68500 and a riskier profit would be around the bottom of the weekly support (0.97500).