Overview:
- The AUD/USD pair set below the double top (0.7840) since yesterday. On the H4 chart, the resistance had already been placed at the level of 0.7851 which coincides with the 78.6% of Fibonacci retracement levels. Also, it should be noted that the price has formed the strong resistance at 0.7851. Furthermore, the AUD/USD pair has still been moving between 38.2% of Fibonacci retracement levels and 78.6% at the same time frame. Additionally, the AUD/USD pair will be able to fall from the level of 0.7851 in order to extend further to 0.7783 today. Hence, there is a probability that the market will start showing signs of bearish market again to indicate the bearish opportunity from the level of 0.7851 to 0.7840 targeting the strong support around 0.7783 and 0.7752. Meanwhile, bears were forced to pull back at the level of this area. Therefore, this level will form strong support at 0.7687 to indicate a bullish opportunity above that line. So, it will be a good sign to buy in the short term above the level of 0.7687 with the first target at 0.7780 and it might resume to 0.7840.
Observations:
- Stop loss should never exceed your maximum exposure amounts. So, your stop loss should be around 55 pips for each position.
- Major support is seen at 0.7687.
- Major resistance has already been placed at 0.7850.
- We expect a new range about 163 pips in coming days.
