AUDUSD Bears Targeting 0.6700 Levels

10 September 2020

AUDUSD seems to be in control of bears since printing highs around 0.7400 handle early this month. The currency has dropped over 200 pips since then, and registered a low just below 0.7200 mark. It is trading around 0.7275 levels for now and remains poised to turn lower near the 0.7300 handle.

AUDUSD probable wave counts are as follows: The currency had print lows around 0.5505 in March 2020. Since then, bulls remained in control and managed to carve a series of higher highs and higher lows through 0.7413 mark.

AUDUSD might have carved an impulse wave from 0.5505 through 0.7400 respectively. Ideally, a corrective drop should be underway, which could retrace the above rally. Bears might remain inclined to push through 0.6700 levels as initial drop.

If the above proposed wave structure holds well, AUDUSD might be preparing for a similar degree corrective wave A-B-C before resuming rally. The fibonacci 0.382 retracement of entire rally is seen towards 0.6678 levels, which could be the termination of Wave A.

Going further, we can expect a Wave B higher back towards 0.7000 handle before Wave C turns lower through 0.6230 levels. The fibonacci 0.618 retracement is seen towards 0.6228 levels as well and probability remains high for a bullish bounce if prices manage to reach there.

Traders might remain poised to hold short positions and add further at resistance around 0.6300 mark. The protective stop might be placed above 0.7400 while projected targets seen towards 0.6700 and lower.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

Trade with
Abans Global

  • Authorised and Regulated by FCA
  • Customer Support 24/5
  • Low Spread & Commission
  • Instant Execution
  • No Dealing Desk
Interested in knowing more about our products

Simply send an e-mail to us at: support@abansglobal.co.uk
Contact us on +44(0) 203 936 9000

We will be happy to address all your queries

Our Products

Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.

Forex

Forex

Know More

View more
Cfd’s

Cfd’s

Know More

View more
Equities

Equities

Know More

View more
Indices

Indices

Know More

View more
Commodities

Commodities

Know More

View more

Create Demo Account

Try Demo

Create Live Account

Sign In