AUD/USD Hits 61.8% Retracement - What's Next? - Forex News by Strategia Forex

AUD/USD Hits 61.8% Retracement – What’s Next?

Posted Wednesday, October 9, 2019 by
Arslan Butt • 1 min read

The AUD/USD currency pair found itself on the recovery track and is currently trading at 0.6740, the session top’s level.

After the previous session pullback and small consolidation during the early Asian session, the AUD/USD currency pair took some fresh buying on the day and didn’t much affect by the disappointing release of Westpac Consumer Sentiment Index. A quiet greenback price action supported offset the weaker data and turned out to be one of the key factors lending some support to the major.

At the Sino-US trade front, the intensified United States and China trade uncertainty could affect investors on the waiting track to place any aggressive bets. President Donald Trump’s decision to levy a Visa restriction on Chinese officials, including blacklisting of Chinese firms in the wake of China’s treatment of Muslim minorities, threatens the upcoming talks between the United States and China. This should cap any substantial gains for the China-proxy Australian Dollar.

The sharp decline in the global risk sentiment, which serves benefits to the US Dollar’s relative safe-haven status and drives flows away from perceived riskier currencies, such as the Australian dollar.

Therefore, it will be compulsory and cautious to wait for a move beyond the 0.6765 area unless any appreciating move will come, as all investors will keep their eyes on the key release of the FOMC monetary policy meeting, which is scheduled to happen at the end this week and might provide some fresh trading clues.

AUD/USD - 4 Hour Chart
AUD/USD 4 Hour Chart

Daily Support and Resistance

S3 0.6668
S2 0.6702
S1 0.6715
Pivot Point 0.6736
R1 0.675
R2 0.6771
R3 0.6805

AUD/USD – Trade Idea
The idea is to stay bearish below 0.6736 with a stop loss above 0.6785 and take profit at 0.6700.

Good luck!

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About the author

Arslan Butt // 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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