- The AUD/USD pair is going to continue dropping downright from the price of 0.7377. The 23.6% of Fibonacci retracement levels and the level of 0.7377 are conforming the same price on the H4 chart. For that, this level is probably going to form a strong resistance. Accordingly, the Aussie is showing signs of strength following the break of the highest level at 0.7370. So, it will be a good sign to sell below the ratio of the level of 23.6% of Fibonacci retracement levels on the daily chart with the first target at 0.7266 and further at 0.7234 (this area of 0.7266 and 0.7234 will act as strong support and a double bottom respectively). Thus, it is going to be a good place to take profit. In addition, this level of taking profit will coincide with the double bottom on the same chart. On the other hand, in case a reversal takes place and the AUD/USD pair breaks through the resistance level of 0.7380, the market will decline further to 0.7465 with a view to indicate a bullish market in the long term.
- The level of 0.7465 is going to act as the highest level.
- The minor support has been set at 0.7266.
- The double bottom has been already placed at the point of 0.7234.
- We expect a bearish market in coming days.
The material has been provided by InstaForex Company – www.instaforex.com