FX.co ★ Technical analysis of AUD/USD for July 8, 2015

Overview:

• The AUD/USD pair is declining from the strong level of 0.7468. It is expected to move as low as 0.7433 today. It should be noted that the resistanceis seen at 0.7476 because this level formed a double top on July 08, 2015. Furthermore, the price has set below 36.6% of Fibonacci retracement levels. Additionally, please pay attention that we expect a saturation around the level of 0.7470. The market is likely to start showing signs of a bearish market again in order to indicate a bearish opportunity from the level of 0.7464 (11.8% of Fibonacci retracement levels in H4 chart). Accordingly, sell below the level of 0.7464 with the first target at 0.7371. If the trend manages to break the double bottom at the point of 0.7371, it will call for a downtrend in order to continue bearish move towards 0.7280. On the other hand, if bears manage to pull back above the level of 0.7470, buyers will be able to break this level. Therefore, the best solution is to set a stop loss at 0.7493.