Hello traders! On November 9, AUD/USD tested the 0.7344, which is the previously formed resistance area. At the same time price has rejected the 78.6% Fibonacci retracement level at 0.7326. This shows that bears are still in control and as long as the price is below 0.7344, AUD/USD should be expected to continue moving south.
On November 12, AUD/USD rejected the 0.7293 level, which is the 38.2% Fibs, after which the price went down and broke below the uptrend trendline. Right now, AUD/USD is attempting to break above the 0.7293, but still failing to close above. Therefore 0.7293 resistance remains valid, and 0.7300 psychological supply levels could be of great interest to sellers.
Perhaps today, selling pressure is likely to increase, resulting in price decline towards the 0.7100 psychological support. This support level is confirmed by two Fibs, the first being the 23.6% and the second is 327.2% Fibs applied to the corrective move up after price broke below the uptrend trendline. All-in-all, there is nearly 300 pips downside potential as long as the resistance holds.
On the upside, break and close above the 0.7344, will immediately invalidate the bearish forecast and in this case, AUD/USD should be expected to continue trending up.
Bias: Strongly bearish while below 0.7344
Potential Resistance Zone: 0.7300 – 0.7280
Potential Targets: 0.7105
Have a profitable trading!