AUD/USD Price Analysis: Bulls eye a daily 38.2% Fibo correction
- AUD/USD is on the verge of a test of key weekly support.
- AUD/USD bulls could be about to make their moves.
The Australian dollar hit fresh multi-year lows at the start of the week as investors moved into the safe-haven greenback after Britain's historic tax cuts plan added to market volatility. This has sent the high beta currency to a low of 0.6437 vs. the greenback, the lowest since May 2020. The following illustrates the prospects of a test of 0.64 the figure or a prolonged correction from here prior to the next significant move to the downside.
AUD/USD weekly chart
There are significant prospects of a correction at this juncture, as per the structure highlighted on the chart above and below.
AUD/USD daily chart
A Fibonacci scale drawn on the latest bearish leg on the daily chart shows prospects of a correction towards the 38.2% ratio ahead of a 50% mean reversion back to test the daily support.