FX.co ★ Technical analysis of AUD/USD for October 15, 2014

Overview: 

• The support of the AUD/USD pair has already set at the price of 0.8642 which coincides with the double bottom. In daily chart, the ratio of 23.6% Fibonacci retracement levels is representing the resistance on October 15, 2014. Moreover, it should be noted that the major resistance will set at the 0.8860 price today. So, according to the previous events, the AUD/USD pair is going to move between the resistance (0.8860) and the support (0.8642) this week. As a rule, history will probably repeat itself at this level again for that we expect a range of 218 pips. Consequently, if the trend fails to close below the level of 0.8642, then it will be a good opportunity to buy above 0.8642 with the first target at 0.8760. Thus, it will be continued straight towards 0.8820 (but the level of 0.8060 will represent the ratio of 23.6% Fibonacci retracement levels, hence it will act a strong resistance in coming days). Notwithstanding, the stop loss should always be taken into account because it should never exceed your maximum exposure amounts. Thus, the best location to set your stop loss should be placed below the level of 0.8642 (the double bottom in daily chart).