Technical analysis of AUD/USD for January 23, 2014

Overview:

• The AUD/USD pair had a breakdown and extended further to as low as 0.8760 last week, and it closed at 0.8844 today as well as the price was placed below 61.8% of Fibonacci retracement levels for two days. Additionally, it should be noted that the price had formed a strong support at the level of 0.8760. Futhermore, this strong level has still been trapped between 61.8% of Fibonacci retracement levels and 00% in H1 and H4 chart. Accordingly, it is probably that the market will start showing the signs of bullish market again in order to indicate a bullish opportunity in the short term from the 0.8760 level of (00% of Fibonacci retracement levels) with a target towards the strong resistance around 0.8920. Meanwhile, the bulls will be forced to pull back below the level of this area. Thus, this level will act as a spot to sell in the long term on January 23, 2013. For that it will a good sign to sell below 0.8923 with a target at the price of 0.8810 and it might resume to the 0.8756 price in order to form a double bottom.

The material has been provided by InstaForex Company – www.instaforex.com