AUDUSD Looking for a Bounce Before Next Big Move Lower
Prepared by Christopher Vecchio, Currency Analyst
The AUDUSD traded to new lows overnight but has since rebounded, while respecting descending channel support as well as the 100% Fibonacci extension at 1.0342 (price did not quite touch in the overnight. With budding bullish RSI divergence on the hourly chart, it appears that a bounce could be nearing. This fits neatly with the wave count from the August 9 top, which is suggesting that price has just completed subwave 1 of wave 3 in the encompassing structure. Near-term resistance comes in at 1.0440/50 (channel support dating back to June, 200-SMA on 4-hour chart), 1.0480, 1.0530/45 (former swing highs), and 1.0600/15 (August high). Should we see a rally up towards 1.0600 again, another failure would market a Double Top and signal a push for a test of 1.0200/05 (100-DMA).