FxWirePro: AUD/USD key resistance at 0.7235, sell deals are recommended below 0.7230

 

• AUD/USD slumped to new lows in the early US session and rebounded back strongly after hitting lows at 0.7034 due to high volatility in the market due to ongoing  financial turmoil in China. The bulls failed to break resistance levels at 0.7281 and turned back and are continuing its bearish movement. The pair is expected to decline further towards 0.7180 and later 0.7120 levels in the short term.

• The resistance level at 00.7235 (61.8% Retracement level),is likely to act as a strong resistance level and hold  Aussie bulls and push the pair downwards, therefore short rally near 0.7230  should be taken as advantage for selling opportunities.

• To the upside, the immediate resistance can be seen at 0.7197 (50% Retracement level), a break above this level would take the pair towards next resistance level at 0.7235 (61.8% Retracement level), to the downside, the immediate support level lies at 0.7159(38.2% Retracement level).                    

Recommendation: Go short below 0.7230, targets 0.71800, 0.7150, SL 0.7350

Resistance Levels

R1: 0.7197 (50% Retracement level)

R2: 0.7235 (61.8% Retracement level)

R3: 0.7385 (Aug 11th lows

Support Levels

S1: 0.7159(38.2% Retracement level)

S2: 0.7112(23.6% Retracement level)

S3: 0.7039 (Aug 24^th lows)