- AUD/USD bears seek an extension to the 0.72 level.
- Bulls, however, are holding grounds in early Asia, so far, eyeing a 50% mean reversion.
Further to the prior analysis, AUD/USD bulls eye a bull correction as Evergrande risks start to abate, there is a risk of a meanwhile extension to test 0.7200 the figure as per the topdown analysis below:
AUD/USD daily chart
The price could be on the verge of a bullish correction from daily support, as explained in the prior analysis.
''A run back to a 50% mean reversion that meets old structure could be targetted near 0.7280. However, failures below 0.7220 open risk of a retest of the mid-Aug lows and 0.71 the figure.''
AUD/USD 4-hour chart
However, looking deeper, there are prospects of a downside extension when analysing the 4-hour time frame.
We have seen a correction of the bearish impulse all the way to the 61.8% golden ratio near 0.7280. When we measure the correction's range, a -272% ratio below the lows has a confluence with the 24 Aug lows.
The 24 Aug lows, located at 0.72 the figure was somewhat instrumental in the bullish rally out of accumulation which means it is a significant level that could well be tested again. The -272% is a high completion target level and the confluence of the two is compelling.
AUD/USD hourly chart
Here it is from an hourly perspective.
