AUDUSD – Strong selling pressure was posted in AUDUSD yesterday resulting in the pair trading to the lowest level in 3 weeks while posting the most negative daily performance in 6 months. However, the selloff has stalled at 1.0442, 61.8% pullback of gains from 1.0346-1.0597. Furthermore, the intraday chart highlights this 3rd wave as fully extended at the 261.8% Fibonacci (1.0444). A reaction higher is being seen from this prime Fibonacci confluence area. We need to see a break of 1.0457 to confirm the bullish momentum.
The profit targets are 1.0486, 1.0510 and towards 1.0580
The risk would be selling through a stop of 1.0405