Black lines- Fibonacci retracements
Back in April our analysis on AUDUSD warned about the bearish signals we were getting and the potential downside towards 0.66. Price action has been choppy but main trend remained clearly bearish with price making lower lows and lower highs. Our target area was between 0.70 and 0.66. Price is now making new weekly lows relative to the past 7 weeks. Price is now challenging the July low. Price is breaking once again below the 50% Fibonacci retracement. This is a sign of weakness. The weekly RSI however is not making new lower lows. If bulls remain weak and are unable to reclaim 0.7150, then we should expect price to continue lower towards the 61.8% Fibonacci retracement.