AUD/USD Price Analysis: Bears eye 0.6900 while below 0.6980
- AUD/USD bulls eye a move to 0.6970s in a 61.8% Fibonacci retracement.
- The downside target is near 0.6920/10 which guards 0.69 the figure.
AUD/USD fell in the London fix and around the Wall Street cash open where most of the damage was done given a break of structure with trapped volumes up high chasing the parabolic move.
The higher time frame traders that bought the break of 0.7000 on the hourly chart were caught up high and the price subsequently dropped from the highs of the day at 0.7011 and fell to a New york session low of 0.6942. The following hourly charts illustrate that there are now prospects of a correction higher before the next move lower:
AUD/USD H1 chart
The price corrected to a 50% mean reversion area before plummeting on Thursday to dynamic trendline support. The bulls would now be anticipated to make a move encouraged but the M-formation:
Zoomed in:
This is a reversion pattern and there are prospects of a move to the 0.6970s in a 61.8% Fibonacci retracement. The downside target is near 0.6920/10 which guards 0.69 the figure.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
