Technical analysis of AUD/USD for March 21, 2014

The daily pivot point: 0.9027.

Trading recommendations:

• The resistance has set at the price of 0.9140 and the support, at the 0.9010 price. So, according to the previous events, the AUD/USD pair is going to move between the resistance and the support. As a rule, history will probably repeat itself at this level again. Therefore, we expect a range about 73 pips on March 21, 2014. Accordingly, if the trend fails to close below the level of 0.9010, then it will be a good opportunity to buy above 0.9010 with the first target at 0.9075, then it will be continued straight towards 0.9125. Notwithstanding, the stop loss should always be taken in account because it should never exceed your maximum exposure amounts. Consequently, the best location to set your stop loss should be placed below the level of 0.9003.

Notes:

• The Risk of 73 pips must make a profit of 110 pips.
• The value of 50% Fibonacci retracement levels is: 0.9022.
• The Volatility: 79.52. As a rule, the market is highly volatile if the previous day had a huge volatility.
• The Support will set at the level of 0.9010.
• The resistance will set at the level of 0.9140.

Intraday technical levels:

• R3: 0.8891
• R2: 0.8847
• R1: 0.8785
• PP: 0.8741
• S1: 0.8679
• S2: 0.8635
• S3: 0.8573

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