AUD/USD: Fibonacci analysis 13 September 2017, 13:56

AUD/USD: Fibonacci analysis

13 September 2017, 13:56

Scenario
Timeframe	Weekly
Recommendation	SELL STOP
Entry Point	0.8030
Take Profit	0.8000, 0.7965
Stop Loss	0.8060
Key Levels	0.7965, 0.8000, 0.8050, 0.8085, 0.8120, 0.8123

Alternative scenario
Recommendation	BUY STOP
Entry Point	0.8055
Take Profit	0.8085, 0.8123
Stop Loss	0.8020
Key Levels	0.7965, 0.8000, 0.8050, 0.8085, 0.8120, 0.8123

On the 4-hour chart the price has rebounded from of 0.8000 (correction 23.6%) and is moving upwards along the curve 23.6%. The level of 0.8050 (correction 23.6%, the middle line of Bollinger Bands) is the obstacle to the growth. In case of breakout the price can grow to the levels of 0.8085 (the upper border of Bollinger Bands) and 0.8123 (September highs). Otherwise the correction to the levels of 0.8000 and 0.7965 (correction 50.0%) at the area of crossing with the upward fan line 38.2% is possible. Stochastic has reversed upwards, but is not far from the overbought area, which limits the growth potential.
On the daily chart the price is reaching the key level of 0.8050 and in case of the breakout can grow to September highs around 0.8120. Otherwise the pair can be corrected to the level of 0.7965 (the middle line of Bollinger Bands, correction 50.0% for H4). Taking into the consideration the downward reversal of Stochastic, the price wouldn’t consolidate above the level of 0.8050 in the nearest future.


Main scenario
Short positions can be opened at the level of 0.8030 with the targets at 0.8000, 0.7965. Stop loss is around 0.8060.
Alternative scenario
Long positions can be opened if the price is set above the level of 0.8050 with the targets at 0.8085, 0.8123 and stop loss at 0.8020.