AUDUSD : BULLISH RECOVERY? WAITING FOR BREAKOUT

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For almost a month now, the pair has lost up to 4.67% since its July 11 high. The short-term trend is clearly bearish.

However, the pair has returned to attractive price levels. The pair is now evolving within the triangle in which it has been for several days. This reintegration, after forming a low at 0.6478, could pave the way for a buying rally if buyers manage to break the 23% Fibonacci level at 0.6554. This level also represents the triangle's descending resistance.

A break of this level could enable buyers to take control and target higher price levels.
The 38% Fibonacci level would appear to be an interesting first level for buyers to take profits.

As for the RSI technical indicator, it is evolving in a bullish channel which is maintaining a relatively healthy buying force. However, we must remain vigilant as to the exit of this channel.

A return to the bottom of the triangle would put sellers in pole position to regain control.


Maxime Dominguez - Technical Analyst for Activtrades


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