** AUD/USD rally stops ahead of major resistance, pullback is likely from 0.9076
** Bias is bearish as far as 0.9085 resistance remains intact
AUD/USD, on Tuesday, stalled upside movement just ahead of a critical resistance level. The pair is likely to begin a correction from its current levels based on price action analysis. The AUD is being traded near 0.9041 against the USD at
Immediate resistance can be noted around 0.9076, the 38.2% fib level, ahead of 0.9100, which is the psychological level and the 100 Daily Moving Average (DMA). A break and four-hour close above 100 DMA shall expose 0.9150, i.e. the 200 DMA and then the 0.9200-9210 handle, which is the 50% fib level. It is important to mention that 0.9085, which is the swing high of the previous wave, is currently acting as the critical resistance zone. Bias will remain bearish for AUD/USD as far as the 0.9085 resistance remains intact. In my opinion the pair shall hold off the 0.9085 resistance because in the long term, the Australian dollar is headed to 0.8550, i.e. the 50% fib level of the entire move from 2008 to 2011.
On the downside, support can be seen near 0.8890-0.8913, which is a convergence of the 23.6% fib level and the 55 DMA, ahead of 0.8860, the 50% fib level of the recent move. We might see a limited pullback from this level. A break and daily close below 0.8860 shall expose 0.8755, i.e.the 76.4% fib level and the last major support before the swing low of the previous wave.
The Commodity Channel Index (CCI) is retreating from extreme overbought territory on the daily chart. The Relative Strength Index (RSI) is showing a 66.00 reading on the daily timeframe , meaning AUD/USD is very close to the overbought zone. MACD is not diverging at any timeframe.
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Hours after the release, we saw approximately a 100-pip rally in the AUD/USD pair. On
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