AUD/USD: sell target - 0.7700
By: Dima Chernovolov
- AUD/USD reached buy target 0.8000
- Next sell target - 0.7700
AUD/USD recently reversed down sharply after the pair reached the round resistance level 0.8000, which was set as the buy target in our previous forecast for this currency pair. The resistance zone near 0.8000 was strengthened by the upper daily Bollinger Band and by the 61.8% Fibonacci Correction of the previous downward impulse from the middle of January (as you can see from the daily AUD/USD chart below).
The downward reversal from 0.8000 created the strong Japanese candlesticks reversal pattern – Evening Star Doji – thereby completing the previous intermediate ABC correction (4). AUD/USD is likely to fall to the next sell target at 0.7700.