AUD/USD climb stalls at 50% recovery

<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.


Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.