Overview:
- The level of 0.7074 is going to form a coherent resistance on September 3, 2015. Moreover, the double bottom of the AUD/USD pair will be set at the price of 0.6982. Besides, the support was broken and turned to resistance at 0.7074 this week. As a result, in the short term it will be very profitable to sell at 0.7074 with a target at 0.6982 and continue towards 0.6966 in order to test the second support. On the other hand, the best place to set stop loss should be above the 0.7090 level.
Forecast:
- Consequently, the market will indicate a bearish opportunity at the spot of 0.7074. Thus, the level will be acting as strong resistance today. It is providing a clear signal for sell deals with the target seen at 0.6966. On the other hand, the stop loss should be placed above the resistance 0.7047.
Review:
- The pivot point: resistance 3 and support 3 are considered to be clear indicators of the maximum range of extreme volatility, though it is possible to pass them through. Pivot lines work well on sideways markets as the prices are most likely to be located between the resistance 1 and support 1 lines. Within a strong trend, the price is expected to be lower than the pivot point line and to continue moving. If the breaking news affect the market, the price is likely to go straight through resistance 1 or support 1 and even reach resistance 2 and resistance 3 or support 2 and support 3.
