FX.co ★ Technical analysis of AUD/USD for January 3, 2014

Overview:

The AUD/USD pair had been fallen from the level of 0.9050, and it was extended further to as low as 0.8970 this week, furthermore the price had been below 38.2% of Fibonacci retracement levels since December 12, 2013. Additionally, it should be noted that the price had formed a strong resistance at the 0.9050 level. Moreover, this strong level has still been trapped between 38.2% of Fibonacci retracement levels and 00% in daily chart. As known, history usually repeats itself at certain level. So it will be of the wisdom 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 0.8990 with targets towards the strongest support around the 0.8860 level. Equally important, the market will form a range between two important levels 0.8860 and 0.8990, so the range will be 130 pips precisely on the last day of the first week in 2014.