Case building for further downside in days to come
- AUD/USD bulls are moving in on the counter-trendline.
- Bears are looking for a downside extension.
AUD/USD is in consolidation following a strong correction into the daily counter-trendline. This is an area of confluence which could act as an area of strong resistance, leading to a downside extension in the days ahead.
AUD/USD prior analysis
”The price is in need of a correction and the 38.2% Fibonacci is the first target that guards a slight confluence of prior lows and a 50% mean reversion.
From an hourly perspective, this can be taken advantage of and bulls will be looking for a bullish structure to form in the coming sessions:”
AUD/USD live market update
The price has rallied to test the counter trendline in a 61.85 Fibonacci retracement which would be expected to act as firm resistance on subsequent restest. A downside extension would be expected for the days ahead.