AUD/USD climb stalls at 50% recovery
James Chen October 23, 2013 6:35 PM
<p>AUD/USD (daily chart) has stalled and pulled back after rising up to reach and slightly exceed the 50% Fibonacci retracement level of the long and […]</p>
AUD/USD (daily chart) has stalled and pulled back after rising up to reach and slightly exceed the 50% Fibonacci retracement level of the long and steep plunge from the April high near the 1.0600 resistance down to the August 0.8850 area low. This 50% recovery comes off an inverted head-and-shoulders pattern reversal with its low at the noted 0.8850 support level. After the neckline of that head-and-shoulders pattern was broken to the upside in early September, the currency pair began to stage a recovery that has just culminated in the current attainment of the 50% retracement.
Wednesday’s price action saw the pair reach a high at 0.9757, slightly above the noted 50% level, before pulling back to the downside from the resistance imposed. Currently, the pair is just below its previous upside resistance target of 0.9650. If AUD/USD is able to turn around and continue its recovery above 0.9650 and the 50% retracement level, key further objectives to the upside include the 0.9850 and then parity (1.0000) levels. Current downside support tentatively resides around the 0.9500 area.
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