FX.co ★ Technical analysis of AUD/USD for July 31, 2014

Overview:

• The AUD/USD pair has dropped from the strong level of 0.9333 and extended further to as low as 0.9294 today but it closed at the 0.9315 level yesterday. It should be noted that the resistance will form at 0.9333 because this level also formed a double top on July 31, 2014. Furthermore, the price has set below 38.2% of Fibonacci retracement levels. Additionally, please be aware that we expect a saturation around the level of 0.9333. Hence, the market is likely to start showing the signs of a bearish market again in order to indicate a bearish opportunity from the level of 0.9333 (38.2% of Fibonacci retracement levels in H4 chart). Accordingly, sell below the price of 0.9333 with the first target at 0.9280. Besides, it will call for a downtrend in order to continue bearish move towards 0.9250. On the other hand, if the bears manage to pullback above the level of 0.9350, buyers will be able to break this level. Therefore, the best solution is to set a stop loss at the price of 0.9375.