The AUD/USD pair has dropped sharply from the 0.7153 level towards 0.7097. The level of 0.7153 acts as a daily pivot point.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.7097. A break of that target will move the pair further downwards to 0.7049. The pivot point stands at 0.7153.
It should be noted that the volatility is very high for that the price of the AUD/USD pair is still moving between 0.7153 and 0.6999 in the coming hours.
Furthermore, the price has set below the strong resistance at the levels of 0.7153 and 0.7188 which coincide with the 38.2% and 61.8% Fibonacci retracement levels respectively.
Additionally, currently the price is in a bearish channel. According to the previous events, the pair is still in a downtrend. From this point, the AUD/USD pair is continuing in a bearish trend from the new resistance of 0.7153.
Thereupon, the price spot of 0.7153 and 0.7188 remains a significant resistance zone.
Therefore, the possibility that the Aussie will have a downside momentum is rather convincing and the structure of the fall does not look corrective.
In order to indicate a bearish opportunity below 0.7097, it will be a good signal to sell below 0.7097 with the first target of 0.7040. It is equally important that it will call for downtrend in order to continue bearish trend towards 0.6999.
On the contrary, stop loss should be placed at the price of 0.7212 (above the daily resistance). The bullish outlook remains the same as long as the RSI indicator is pointing to the upside on the one-hour chart. Hence, the stop loss should be located above the level of 0.7212.
The material has been provided by InstaForex Company – www.instaforex.com
🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.
As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.