61.8% Retracement Achieved - What's Next?

Bullish rally in the Aussie on a dovish RBA – Quick update!

Posted Tuesday, August 21, 2018 by
Arslan Butt • 1 min read

Good morning, traders.

During the early Asian session, the Australian dollar slightly weakened against the dollar on the back of dovish RBA meeting minutes. The central bank recorded in its minutes that the U.S. trade policy is still a root of global uncertainty and that stronger-than-expected U.S. growth could cause a weakness in the Australian Dollar.

AUD/USD - 4 Hour Chart

AUD/USD – 4 Hour Chart

Speaking about the technical side, the AUD/USD has completed the 61.8% retracement near $0.7360. The bullish trend seems strong but we should see if buyers respect a Fibo resistance level of $0.7355 or they violate it. Anyhow, we should be ready for both scenarios. The violation of $0.7350 is likely to lead the AUD/USD towards $0.7380  and $0.7400.

Whereas, the pair can stay bearish below $0.7390 with a target of $0.7325 and $0.7295. Good luck!

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