- AUD/USD bulls step in at daily support and target upside correction.
- Bears will be seeking a test of familiar structure for a discount.
AUD/USD is correcting the string downside move as we head into early Asia.
The US dollar has been the top performer on Tuesday in risk-off markets which has weighed don the commodity complex.
The following top-down analysis illustrates that the price is headed towards a sizeable retracement.
Daily chart
The bulls can seek a string retracement to old support and a confluence of the 61.8% Fibonacci retracement.
However, there are nearer-term targets on the lower time frames.
Hourly chart
There is a confluence of old support meeting critical Fibonacci levels on the hourly chart.
15-min chart
The lower time frames, such as the 15-min chart, can be used to identify near term structure in order to seek out optimal entry and targets.
In this case, the conditions remain bearish but a cross over of the 8 open and 8 close SMAs can help reinforce the bullish bias as Momentum moves towards more positive territory.
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