61.8% Correction Done

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61.8 Correction Done
61.8 Correction Done

61.8 Correction Done

The Australian dollar has completed its 61.8% bullish correction on the Fibonacci retracement scale of the bearish rally it had in the first half of November. The AUD/USD pair has moved below today’s pivot point and as well as the critical level of 0.9408, as sellers would feel safe to short the pair below this level.

Currently it is trading at 0.9388 just above its mild support, but breaking of 0.9383 could start yet another continuation of the bearish move where its target on the downside would be 0.9367, 0.9343 and 0.9319. Another important thing that the traders must consider is that if the Aussie manages to break and sustain below 0.9300 then its target would be 0.9000 and this could happen easily by the end of this year.

Talking about the fundamentals, its price-action and technical indicators don’t seem to allow any good fundamentals to have their impact, but it all depends on the comments made by the Reserve bank of Australia as to whether they announce the increase in interest rates or not. Some sources say that the RBA is looking forward to do so and let its currency gain value in the market, but trade what you see as the rumors are misleading at times.

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Asset Purchase Facility

The British pound is on a sound bullish streak and has topped 1.6143 on Friday, and has been trading in a short range so far this week. Currently it is hovering at 1.6116 where bulls do not seem to allow bears to have any chance to take over control, where today’s pivot point level of 1.6107 is acting as a strong support for the pair.

Traders are eyeing on the voting results that would be released in the London session today regarding the Asset purchase facility, where we need to see whether the economy needs further stimulus or not. However, considering the economic indicators of the past week and early November, the economy seems to be in a good shape as its manufacturing, services, and as well as construction sector are booming and contributing well enough to the job market.

A move below 1.6105 would open the doors for the pair to test its next support levels at 1.6084 and 1.6060.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com