Trading plan for AUDUSD for August 31, 2021

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Technical outlook:

AUDUSD is pulling back from the day's high registered around 0.7340 levels. The currency pair is trading around 0.7310/12 for now, looking to drag lower towards 0.7250 and 0.7200 respectively. Also note that 0.7200 is the fibonacci 0.618 retracement level of entire rally between 0.7100 and 0.7340 levels respectively. Hence probabilities remain high for a bullish bounce if prices manage to drop there.

AUDUSD is facing immediate price resistance around 0.7385, while support comes at 0.7280 levels respectively. A break below 0.7280 would confirm that the currency pair is heading further lower towards the above fibonacci support. On the flip side, if prices break above 0.7340 mark, it could open doors for further rally towards 0.7380/90 levels.

Watch out for a break below 0.7280 for further short term downside push. Aggressive traders might prepare to initiate fresh short positions with risk above 0.7350 levels respectively.

Trading plan:

Potential to drop towards 0.7200, against 0.7350

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com

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