By: John Ursus
Timeframe: W1
Recommendation: Short Position
Entry Zone: 0.9480 – 0.9530
Take Profit Zone: 0.9000 – 0.9050
Stop Loss Zone: 0.9600 – 0.9630
The AUDUSD has rallied strongly since the middle of January. The rally took this currency pair from an intra-day low of 0.8659 to an intra-day high of 0.9504 where it currently trades. Now this currency pair is trading at a very strong 50.0 Fibonacci Retracement Fan where it is likely to face an increase in selling pressure.
Forex traders should be careful around current levels, but expect a correction back down to its 38.2 Fibonacci Retracement level. Any rallies higher from current levels should be taken as a good opportunity to enter new short positions. Upside potential is currently rather limited while downside potential is very attractive.
