ForeCastle

The AUD/USD has started Tuesday’s trading breaking out to a new 2017 high at .7384. However, the pair was quickly rejected by resistance found at a 61.8% retracement value at .7385. As seen in the image below, this retracement has been measured using the distance between the December 2016 high and low, found at.7524 and .7159 respectfully. If prices continue to trade beneath this value, it may suggest a daily turn back in the direction of the pairs primary trend. Alternatively if the AUD/USD rebounds intraday, it may suggest that the pair may make an attempt to reach the next point of resistance found at .7446.

AUD/USD Daily Chart & Fibonacci Retracement Values





Intraday, the AUD/USD first turned overnight at resistance found at the R3 Camarilla pivot at .7375. Now after an early morning decline, the pair is finding support against the S3 pivot at .7325. This movement suggests that the AUD/USD is trading in a range bound environment going into the opening of US Session trading. If prices continue to bounce between these points, traders may continue to look for range trading opportunities between these values.

In the event that range bound conditions end, bullish breakouts may be sighted above the R4 pivot at .7399. A bullish breakout here would suggest a continuation of last week’s trend, and traders may begin to target higher highs. Initial targets may be found at .7449 by extrapolating a 1X extension of today’s 50 pip range. Alternatively in the event that the AUD/USD trades lower, bearish breakouts may begin under .7300. Again using a 1X extension of the range, initial bearish targets may be found near .7250.

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