FX.co ★ Technical analysis of AUD/USD for September 2, 2014

Overview:

• The AUD/USD pair had a breakdown and extended further to as low as 0.9270 last week. It closed at 0.9285 today as well as the price was placed below 50% of Fibonacci retracement levels for two days. In addition, it should be noted that the price had formed strong support at the level of 0.9270 (also, you might note that the price of 0.9270 represents the double bottom in H4). Futhermore, this strong level has still been trapped between 50% of Fibonacci retracement levels and 23.6% in H4 chart. We expect a range of 40 pips to 53 pips today. Accordingly, it means probably that the market will start showing the signs of a bullish market again in order to indicate a bullish opportunity in the short term from the 0.9300 level or 23.6% of Fibonacci retracement levels with a target towards the strong resistance around 0.9300. Meanwhile, the bulls will be forced to pull back below the level of this area. Thus, this level will act as a spot to sell in the long term on September 2, 2014. Therefore, it will a good sign to sell below 0.9305 with a target at the price of 0.9270 in order to form a double bottom.