Dmitriy Gurkovskiy | Oct 01, 2020 09:13
In the H4 chart, the pair is correcting upwards after completing the descending wave. A smooth-running rising impulse gives the impression that the asset is heading towards the high at 0.7414. After breaking it, the price may reach the long-term 76.0% fibo at 0.7503. However, as long as the pair hasn’t tested the high, which acts as the resistance, a more probable scenario implies that AUD/USD may continue trading downwards after the divergence on MACD. The first downside target is 23.6% fibo at 0.6963. After breaking it, the instrument may fall to reach 38.2% fibo at 0.6686.
The H1 chart shows a more detailed structure of the current correctional wave after a convergence on MACD, which has already reached 50.0% and may continue towards 61.8 and 76.0% fibo at 0.7215 and 0.7264 respectively. The current uptrend is looking pretty stable but one can see a divergence being formed on MACD, which may indicate that the growth is over. The support is the low at 0.7006.
As we can see in the H4 chart, the convergence on MACD made the pair start a new uptrend, which, after reaching 23.6% fibo, is now correcting to the downside. After the pullback is over, the next upside target will be 38.2% fibo at 1.3634. The support is the fractal low at 1.2994.
The H1 chart shows a more detailed structure of the current descending movement after a divergence, which has already broken 23.6% fibo and may continue towards 38.2%, 50.0%, and 61.8% fibo at 1.3257, 1.3206, and 1.3157 respectively. If the price breaks the high at 1.3420, the correction will be over and then the instrument may continue its mid-term growth.
Written By: Dmitriy Gurkovskiy
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