20.11.201912:30 Forex Analysis & Reviews: Technical analysis of AUD/USD for November 20, 2019

Overview:

The AUD/USD pair will keep moving downwards from the level of 0.6859 (this level coincides with the 61.8% of Fibonacci retracement levels in H1 chart). Accordingly, the Aussie is going to show signs of strength at the lowest price of 0.6820. Thus, it will be a good deal to sell below the level of 61.8% of Fibonacci retracement levels on H1 chart with the first target at 0.6771 and further at 0.6726. Equally important, 0.6726 will be acting as a strong support so it is going to be a good place to take profit, it also should be noted that this level of taking profit will coincide with around last bearish wave. On the other hand, in case a reflection takes place and the AUD/USD pair is not able to break through the resistance at the 0.6820 level, the market will further decline to 0.6726 in order to indicate a bearish market.

Indicators:

Additionally, the RSI is still calling for a strong bearish market as well as the current price is also below the moving average 100.

Trading recommendations:

According to previous events, the AUD/USD pair has still been trapped between the level of 0.6859 and the 0.6726 level (those levels coincided with the fibonacci retracement levels 61.8% and last bearish wave respectively). It should be noted that the 0.6914 price (around double top at the level of 0.6914) will act as a strong resistance on November 7, 2019. Therefore, it will be too gainful to sell short below 0.6859 and look for further downside with 0.6771 and 0.6726 targets. It should also be reminded that stop loss must never exceed the maximum exposure amounts. Thus, stop loss should be placed at the 0.6914 level today.