AUD/USD: Technical Analysis and Trading Recommendations for November 17th -- 18th, 2011.

Technical analysis

Mourad El Keddani

 

Pivot Point: 1.0107.

Intraday Technical levels ((17^th of November 2011)):

R3:1.0274
R2:1.0228
R1:1.0153
PP:1.0107
S1:1.0032
S2:0.9986
S3:0.9911

Overview:

AUD/USD's turbulent rise from 1.0075 has extended further to as high as 1.0752 three weeks ago, and it closed at 1.0079 yesterday, the price has placed above 38.2% of Fibonacci retracement levels five weeks ago. Aswell it should be noted that the price had formed a strong support at 0.9975. Futhermore, this strong level has still been trapped between 50% of Fibonacci retracement levels and 38.2% on H4 chart. hence it is probably that the market will start showing the signs of bullish market again in order to indicate a bullish opportunity on level of 0.9975 with a first target of 1.0150, and continues towards 1.0220. Meanwhile; the bulls were forced to pullback below the level of 0.9975, therefore this level will be formed a strong resistance in order to indicate a bearish opportunity below the resistance, so it will a good sign to sell below 38.2% of Fibonacci retracement level with a target at 0.9820 and it might resume to 0.9710 (Take profit at 23.8% of Fibonacci).

Trading Recommendations:

According to previous events, the price has still been trapped between 50% of Fibonacci retracement levels and 32.8%.

• Buy above 0.9975 with a first target of 1.0150, and continues towards 1.0220.
• Sell below 0.9900 (H4 chart), it will call for downtrend in order to continue bearish towards 0.9710

Observation (s):

• Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.
• Key level at 38.2% Fibonacci retracement levels (0.9908).
• Strong Support: 0.99.
• Strong Resistance: 1.023.

http://instaforex.com/forex_analysis/43986/?x=OUE

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