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