By: John Ursus

Timeframe: W1

Recommendation: Short Position

Entry Zone: 0.9480 โ€“ 0.9530

Take Profit Zone: 0.9000 โ€“ 0.9050

Stop Loss Zone: 0.9600 โ€“ 0.9630

The AUDUSD has rallied strongly since the middle of January. The rally took this currency pair from an intra-day low of 0.8659 to an intra-day high of 0.9504 where it currently trades. Now this currency pair is trading at a very strong 50.0 Fibonacci Retracement Fan where it is likely to face an increase in selling pressure.

Forex traders should be careful around current levels, but expect a correction back down to its 38.2 Fibonacci Retracement level. Any rallies higher from current levels should be taken as a good opportunity to enter new short positions. Upside potential is currently rather limited while downside potential is very attractive.

AUDUSD Signal 7214

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