AUD/USD continues bearish correction; significant obstacle at 23.6% Fibonacci level.
AUD/USD skyrocketed during Tuesday’s trading session and created a one-week high of 0.7841. The pair jumped above the 23.6% Fibonacci retracement level at 0.7827 of the up-leg from the low of 0.6820 and the high of 0.8135, however, it ended the day below it and started Wednesday’s session with negative movement.
In the daily timeframe, from the technical point of view, the indicators seem to be in confusion. The MACD oscillator is flattening in the bearish territory but posted a bullish crossover with its trigger line in the previous days. Moreover, the RSI indicator is pointing to the downside below the 50 level as it failed to enter the positive zone.
Upsides moves are likely to find resistance at the aforementioned 23.6% Fibonacci mark which is acting as a strong obstacle for the bulls. A climb above this area could open the door for the 40-simple moving average around 0.7900 at the time of writing. Clearing this key level could push the price further up towards 0.7990.
On the flip side, the next target to have in mind is the March 1 low at 0.7715. At this stage, the market would likely see a resumption of the downward movement. Falling below this level could help shift the focus to the downside at the 38.2% Fibonacci mark near 0.7640.
All trading involves risk. It is possible to lose all your capital
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.