AUD/USD: Break and Retest Scenario? (September 24, 2013)

AUD/USD seems to be having trouble sustaining its rallies, as a major correction might take place instead. The pair found resistance at .9500 and may pull back to an area of interest before resuming its rally.

The .9200 major psychological support is right around the 50% Fibonacci retracement level while the 38.2% level lines up with the .9300 mark. These areas could act as support if the pair does make a huge correction.

Going long at .9300 with a stop below .9200 and a target at .9500 or higher makes for a good reward-to-risk on a swing trade. Stochastic is moving down, suggesting that Aussie bulls are taking a breather for now.

By Kate Curtis from Trader’s Way