Technical analysis of AUD/USD for October 23, 2014

Overview:

• The price of AUD/USD pair has still been trapped between 0.8727 and 0.8929. Therefore, the first step is to wait for a period of tight sideways market before breakouts. Then, probably, the market is going to start showing bullish signs. In other words, it will be a good sign to buy above 0.8700 – 0.8727 with the first target at 0.8845 and the price will climb towards 0.8932 in order to test the first resistance. Also, it should be noted that the level coincides with the ratio of 32.8% Fibonacci retracement levels. However, if the pair fails to break 0.8932, the market will indicate a bearish opportunity below 0.8932. Then the level will really act as strong resistance, it wil be a good sign to sell below 0.8932 with the first target at 0.8878 and it will call for a downtrend in order to continue bearish movement towards 0.8813.

Intraday technical levels:

• Projected high: 0.9024
• Breakout (buy stop): 0.8945
• Strong resistance (sell limit): 0.8929
• Current pivot: 0.8790
• Strong support (buy limit): 0.8727
• Breakout (sell stop): 0.8692
• Projected low: 0.8641

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