Technical analysis of AUD/USD for September 18, 2014

Overview:

• The AUD/USD pair had fallen from the level of 0.9111, and it was extended further to as low as 0.9015 this week. So, new resistances have placed at the levels of 0.9111 and 0.9015. Furthermore, the price had been below 38.2% of Fibonacci retracement levels in the daily chart. Additionally, it should be noted that the price had formed a strong resistance at the 0.9015 level. Moreover, this strong level has still been trapped between 38.2% of Fibonacci retracement levels and 23.6% in the daily chart. As it is known, history usually repeats itself at certain level. Consequently, it will be reasonable to use historic rates to determine future prices, hence it is probably that the market will show the bearish signs again in order to indicate a bearish opportunity at the level of 0.9015 with targets towards the strongest support around the 0.8933 level. Equally important, the market will form a range between two important levels 0.8990 and 0.8933, thus the range will be around 57 pips today.

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