Technical analysis of AUD/USD for October 9, 2014

Overview:

• The resistance of AUD/USD pair has set at the price of 0.8934 and the support at the 0.8820 price. So, according to the previous events, the AUD/USD pair is going to move between the resistance and the support in coming days. As a rule, history will probably repeat itself at this level again. Therefore, we expect a range about 114 pips this week. Accordingly, if the trend fails to close below the level of 0.8820, then it will be a good opportunity to buy above 0.8825 with the first target at 0.8890, then it will be continued straight towards 0.8935. 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 0.8780.

Notes:

• The risk of 76 pips must make a profit of 114 pips.
• In the H1 chart, the value of 50% Fibonacci retracement levels is 0.9022.
• The volatility: 259.71. As a rule, the market is highly volatile if the previous day had huge volatility.
• The support will set at the level of 0.8821; and the resistance will be at the level of 0.8933.

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