AUD/USD is currently trading at 0.72531 showing bearish price action. Price is currently contracting within stage 1’s trading range. After a breakout of a double bottom price is retracing to test previous resistance as support, which is also a 0.618 Fibonacci retracement level on the monthly time frame.
There is potential for price to find support around 0.71935+/- as buyers will be looking to enter the market on key reversal areas.
As reflected by the ATR price is approaching consolidation. On the formation of a new structure low look for price to rally for confirmation of the beginning of the next impulse wave.
1) RSI approaching overbought.
2) Cross between moving averages
In the case of a bearish breakout look for a short position, as downward pressure will be strong on the break of a 0.618 Fibonacci level.
There is potential for price to find support around 0.71935+/- as buyers will be looking to enter the market on key reversal areas.
As reflected by the ATR price is approaching consolidation. On the formation of a new structure low look for price to rally for confirmation of the beginning of the next impulse wave.
1) RSI approaching overbought.
2) Cross between moving averages
In the case of a bearish breakout look for a short position, as downward pressure will be strong on the break of a 0.618 Fibonacci level.