AUD/USD Price Analysis: Bears seeking a 38.2% Fibo retracement
|- AUD/USD bulls seeking an upside continuation may need to be patient.
- The daily chart is offering a bearish formation and eyes are on the prior resistance.
AUD/USD is on the front foot as the US dollar takes a knock on the Nonfarm Payrolls disappointment. However, the technical outlook argues the case for a correction according to the daily chart.
The following is a top-down analysis that illustrates the bullish case from a monthly and weekly perspective and the bearish bias from a daily point of view.
Monthly chart
The price has rallied this month so far and is showing prospects of a continuation towards the resistance structure.
Weekly chart
The weekly chart shows a bullish reverse head and shoulders as the price it pressures the neckline.
Daily chart
The daily chart, however, is looking overstretched and the W-formation is a bearish pattern where the price would be expected to test the prior resistance and the confluence of the 38.2% Fibonacci retracement.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.