AUDUSD tries to gather positive momentum - Technical Analysis - 11-02-2016

AUDUSD gave up ground in the intraday levels, trying to gather positive momentum that would help it rise again, and reaching thereafter the support of the SMA50, settling above the important support of 0.7080, which represents the ratio 50% of Fibonacci retracement levels for a descending wave in the medium term (from 0.7333 to 0.6826), while noting that relative power indicators have reached extremely oversold levels.

Therefore we expect the pair to reverse higher in the coming trading, as long as the important support of 0.7080 holds on, targeting thereafter the resistance of 0.7213, which represents the ratio 76.4% of the same retracement levels mentioned earlier.