Chart Of The Day: AUDJPY Trades Near Important Horizontal Resistance

December 01, 2015 06:22

Following its reversal from 86.30, comprising 23.6% Fibonacci Retracement of its June – August downside, the AUDJPY managed to follow short-term rising trend-channel, which fueled the pair towards highest levels in more than three months on Monday. However, the pair couldn't surpass the 89.40-60 horizontal resistance area, including the lows market in July and 50% Fibo, needless to say the capacity to clear channel resistance, near 90.00 round figure mark. Should the pair closes above 90.00, it can quickly rally towards 61.8% Fibo, near 91.30 and to the 92.45-50 resistance-zone before aiming the 93.50 level.

Alternatively, a pullback from the current prices, which becomes more likely, can witness the channel support, near 88.20-15 support level, breaking which 38.2% Fibo and the 100-day SMA, near 87.70-60, can provide strong downside support to the pair. Given the pair's inability to hold 87.60, chances of its re-test to 86.30 can't be denied.

Join us on FB and Twitter to stay updated on the latest market events.

Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.