FX.co ★ Technical analysis of AUD/USD for January 21-22, 2015

Overview:

• The support of the AUD/USD pair has already been set at the price of 0.8164. On the H4 chart, the ratio of 50% Fibonacci retracement levels is coinciding with the support of 0.8164. Moreover, it should be noted that the minor resistance will be set at the 0.8232 price today. So, according to the previous events, the AUD/USD pair is going to move between the resistance and the support. Then, the market will be trading between the levels of 0.8232 and 0.8164. Therefore, we expect a range about 68 pips. Consequently, if the trend fails to close below the level of 0.8164, it will be a good opportunity to buy above 0.8170 with the first target at 0.8238 (78,6% Fibonacci retracement levels), then it will be continued straight towards the double top around the area of 0.8294 tomorrow. Moreover, it should be noted that the market was very stable and trend was also very clear (upward) since yesterday. However, the stop loss should always be taken into account because it should never exceed your maximum exposure amounts. Thus, the best location to set your stop loss should be placed below the level of 0.8130.