AUD/USD Price Analysis: Bulls step in at key daily support
- AUD/USD meets a support structure on the daily chart.
- AUD/USD bulls eye a significant correction to the upside.
AUD/USD has travelled between a low of 0.6667 and 0.6694 on the day so far, stuck in a holding pattern on Monday, after suffering a major sell-off last week on global growth concerns.
The markets are now awaiting domestic inflation data for clues on the July rate move now that the weekend mutiny by Russian mercenaries news has been digested into the price that had otherwise been a risk-off theme for the Aussie that trades high beta to the stock market. Investors were waiting for more clarity about that situation.
The Antipodean currency was tumbling 2.8% last week, the biggest since August last year, to 0.6663. Technically, the price is in a bearish scenario:
AUD/USD monthly chart
The 61.8% Fibo is so far holding up the monthly price action.
AUD/USD weekly chart
We have a move into the weekly W-formation.
AUD/USD daily chart
Meeting daily support, we now have prospects of a move higher towards the neckline area of the daily M-formation where the key Fibonaccis are aligned as illustrated above.