FX.co ★ AUD/USD: Technical Analysis and Trading Recommendations for December 14th -- 16th, 2011.

Pivot Point: 1.0049.

Intraday Technical levels ((14th of December 2011)):

R3: 1.0302
R2: 1.0231
R1: 1.0120
PP: 1.0049
S1: 0.9938
S2: 0.9867
S3: 0.9756

Overview:

AUD/USD's turbulent fall from 1.0335 has extended further to as low as 1.0010 today, and it closed at 1.0008 yesterday, the price has placed below 38.2% of Fibonacci retracement levels two days ago. Aswell it should be noted that the price had formed a strong resistance at 1.0146. Futhermore, this strong level has still been trapped between 50% of Fibonacci retracement levels and 38.2% on H4 chart. hence it is probably that the market will start showing the signs of bearish market again in order to indicate a bearish opportunity from the level of 1.0146 to 1.0050 with targets towards the strong support around 0.9781. Meanwhile; the bears were forced to pullback at the level of this area, therefore this level will be formed a strong support at 0.9781 in order to indicate a bullish opportunity above the support , so it will a good sign to buy above 0.9781 with a target at 1.0010 and it might resume to 1.02.

Trading Recommendations:

According to previous events, the price has still been trapped between 1.0146 of Fibonacci retracement levels and 1.0010.

• Buy above 0.9781 with targets towards 1.02.
• Sell below 1.0145 (H4 chart), it will call for downtrend in order to continue bearish towards 0.9919 then 0.9781.

Observation (s):

• Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.
• Strong Support: 0.9781.
• Strong Resistance: 1.0146.