AUD/USD Fibonacci Analysis; Trade Idea Buy at 0.9181
November 23, 2009 - 5:09 pm by Juan P. Bejarano · 6 Comments
AUD/USD extended gains in the NY session, in tandem with stronger equity markets, to reach an intraday high at 0.9278, before retracing slightly.
Taken this high as a possible near term top, we find Fibonacci support levels at 0.9214 (38.20%), followed by 0.9196 (50.0%), 0.9178 (61.80%), and 0.9152 (78.6%).
From the strong upward move, demand is likely to be found between the 50.0% and the 61.8% Fibs.
The Aussie looks to be supported above the 0.9150 level, while further risk appetite may push the pair above the 0.9300 area.
A break above NY session’s high would open next target at 0.9336 (78.6% Fib last 4hr leg).
Above this level, the Aussie will find subsequent resistance at 0.9371 and the psychological 0.9400.
Near term bias remains bullish with dips likely to be met by buying pressure.
Trading levels in play:
Order placed early in the morning is still valid.
Limit Buy @ 0.9181 Targets: T1 0.9201- T2 0.9321 Risk: 0.9137
* After 15 pips profit move stop to entry, take profit at will. Trade is canceled if it rebounds near entry and moves higher by 20 pips. Will follow up with comments if outlook changes.
DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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How do you feel about this trade still? I was in and took profits around .9201.It hit the main pivot at around.9217 then retraced with a long red candle.
How do you feel about this trade still? I was in and took profits around .9201.It hit the main pivot at around.9217 then retraced with a long red candle.
Its hard to tell in the near term due to the FED minutes to be released at 2:00pm EST. I tend to see it edge higher pre-annoucement since the FED may again show it is reluctant to hike rates in the near term…
The reason I want to stay flat with no orders is if the FED's text has comments about the US Dollar which would see the pair fall. Im saying this because recently Bernanke made comments regarding the weakness of the USD.
Technically, that retracement from the pivot was strong and looking at the 4hr chart the last candle looks quite bearish if it closes with the long wick.
Thanks for the response. Currently seems nailed to the S1 of the PP. Stepping back there is massive support at .89
Aussie is still respecting the bullish trend line on the daily chart, but as you said, the next huge support is that 89 level.
The more we stay in range/undecided territory, chances are we could retest the .89 level and possibly a great buy entry there.