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AUDUSD has held above the 61.8% Fibonacci retracement and has turned higher. In our last analysis we talked about the high probability of a short-term upward reversal as support at 0.6730 was very important.
Red rectangle- resistanceBlue rectangle- support
Green rectangle - target if red rectangle is broken
AUDUSD confirmed today the importance of the 61.8% Fibonacci retracement level. Bouncing off that area confirmed our view from yesterday's post that this is a high probability turn around level. Resistance is the recent high at 0.6822 and a break above this level will open the way for another leg higher towards 0.6870. So far we have seen the formation of a higher low. Bulls need to defend recent lows. Failure to hold price above 0.6745 will increase the chances of new lows below 0.6677.
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