The sellers of the sterling continue their strong downside pressures on the AUDUSD pair thus having forced the price as low as 0.7044which is today’s major pivot area where the bulls and the bears will attempt to take the lead.
The pair has made, since the 2nd of February 2016, a swing oscillation between the range of 0.7000 and 0.7260 respectively.
Probable Scenario
The latest stabilization of the pair above the 0.7044 zone is a good indication that the buyers could likely retrace the price to the upside.
In the scenario where the pair rises, it could escalate as high as 0.7178, Fibonacci’s 161.8%, and 0.7400, Fibonacci’s 261.8%.
The Stochastic oscillator also confirms the uptrend condition showing that the pair will likely retrace upwards.
Alternative Scenario
Alternatively, in the event where the buyers are not able to exert aggressive upside pressures, and the sellers continue their pressures below the 0.7044 and the 0.6960 zones, the pair could drop to 0.6873.
Today’s Major Announcements
- There are no any major announcements that could strongly impact either the Australian dollar
- The Labour Market Conditions Index (Jan) is expected to have a medium impact on the U.S. dollar
Synopsis
- Probable trend (Bullish): 0.7044
- Bullish take profit targets:0.7178, 0.7400
- Stop loss target: 0.6960
- Alternative trend (Bearish): 0.6960
- Bearish take profit target: 0.6873