Whoa! I hope you didn’t get wiped out on the AUDUSD, as there was a strong change in the tide over the past few trading sessions…. Is this the start of a new trend? Or merely a pullback? The pair just bounced off the .764 Fibonacci level at .8600 and right now is sitting under the .8660 price area, which has been an area of in interest. If sellers are tired after all that legwork to push the pair down, we may see the pair shoot back up and try to test the .8700 handle and the yearly high. If on the other hand, buyers don’t step in, we may see the pair fall all the way to previous support around .8550.
It looks like the upper bound resistance from the ascending triangle chart formation I drew yesterday finally broke out. Remember, whenever price passes through resistance, that price level becomes support. I don’t know if price would pull back all the way to broken resistance at 91.65, but if it does, we might see strong buyer support around that area. In addition, 91.65 is also the previous week’s high. On the other hand, if the just continues its climb top, it might face resistance at 92.50, the previous day’s high.
Above is a beautiful depiction of a potential Fibonacci sequence. After finding minor support at 1.6200, the pair could rally back up to 1.6300, 1.6350, or 1.6400. What’s interesting is that all of these possible retracement levels correspond almost perfectly with psychological whole numbers. Given this, the pair can continue its downward move if and when it reaches any of those marks. However, it can fall down to 1.6100 already if 1.6200 gives way quickly.