Australian business confidence boosts – Can AUD/USD go for Fibonacci retracement?

Posted Tuesday, August 14, 2018 by
Arslan Butt • 1 min read

Good morning, traders.

It’s been a cool rainy morning today and I just love the rain. Anyways, what’s more, exciting about the market is that the National Australia Bank Limited has released the Business Confidence figure. Australian business confidence plunged in the past couple of months from 10 to 6. Perhaps, this drop is caused by the ongoing trade war between China and the U.S. China is the biggest trading partner of Australia and any uncertainty in the Chinese markets do impact the Australian markets as well.

 

This morning, the Australian business confidence slightly soared to 7 from 6 and it may help to underpin the weaker Aussie today.

AUD/USD - 4 Hour Chart

AUD/USD – 4 Hour Chart

Technically, the AUD/USD is still stuck in the narrow trading range of $0.7270 – $0.7285. On the 4- hour chart, the commodity currency is trading in the oversold zone which is signifying a potential for a bullish retracement. Aussie is very likely to go after 23.6% Fibonacci retracement level of 0.7300, and 38.2% Fibbo level of 0.7335 today.

 

Quick Trade Idea – AUD/USD can stay bullish only above $0.7275 for 30/40 pips.

 

 

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About the author

Arslan Butt is our Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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