FX.co ★ Technical analysis of AUD/USD for January 28, 2015

Overview:

• The price of AUD/USD pair has been set below the double top (0.8127) since January 22, 2015. Also, it should be noted that the price has formed a strong resistance level of 0.8127 thata represents the golden ratio of Fibonacci retracement levels on the H1 chart. Furthermore, this strong level has still been moving between 23.6% of Fibonacci retracement levels and 61.8% at the same time frame. Additionally, the AUD/USD pair will be trapped between the prices of 0.8127 and 0.7960. Therefore, the trend will probably be fallen from the level of 0.8130 extended further to as low as 0.8020 today. Hence, the market will probably start showing signs of bearish market again in order to indicate the bearish opportunity from the level of 0.8130 to 0.8020 with targets towards the strong support around 0.7960. Meanwhile, the bears were forced to pull back at the level of this area; therefore, this level will form a strong support at 0.7910 in order to indicate a bullish opportunity above the support, However, the stop loss should always be taken into account for that it is very safe to set the stop loss at the level of 0.8168.