1-hour Bars
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).
