AUD/USD Price Analysis: Bulls are coming up for air following big sell-off
|- AUD/USD could be primed for a bullish correction prior to the next leg to the downside.
- Bears have the 0.6713, 0.6699 and 0.6682 levels in their sights.
If the market doesn't just continue to freefall, then a correction in AUD/USD would be expected at this juncture. The following illustrates a potential flight path for the Aussie over the coming sessions, while also taking into consideration the key jobs data on Thursday.
AUD/USD daily chart
From a daily perspective, the bearish impulse is powerful and this is a falling knife. However, if the bulls do somehow manage to take back control, 0.6800 will be eyed as a current 38.2% Fibonacci retracement of the sell-off. In any scenario, the downside is favourable either before the correction or after and the 0.6713, 0.6699 and 0.6682 levels will be of interest as prior daily lows.
AUD/USD H1 chart
From an hourly perspective, the 38.2% of the hourly impulse is a touch beyond the midpoint of the 0.67 area guarding a deeper correction towards the 61.8% Fibonacci level around 0.6780 that has a confluence of the prior mid-way bounce (green candle).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.