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6 Feb 2020
AUD/USD Price Analysis: Bulls again fail to keep gains above key Fibonacci level
- AUD/USD is struggling to establish a strong foothold above a Fibonacci hurdle.
- The stalled bounce could be followed by a pullback to 0.6720.
AUD/USD is better bid at press time near 0.6750, having printed a high just above 0.6758 a few minutes before press time. That level marks the 23.6% Fibonacci retracement of the drop from 0.7016 to 0.6679.
The bulls have failed to keep gains above 0.6758 for the second day. On Wednesday, the pair printed a high of 0.6774 but closed below 0.6758.
The repeated rejection above key Fibonacci level has weakened the immediate bullish case put forward by the bullish inverted hammer reversal confirmed on Feb. 4.
The pair will likely fall back to 0.6720 if the bulls now fail to defend the session low of 0.6725. The immediate bullish close will be revived if the spot finds acceptance above 0.6758.
Daily chart
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Trend: Bearish below 71.10