Looking at the daily chart, it seems likely that a lower top is forming just above the psychological resistance at 0.9000. This level falls very close together with the 50% Fibonacci retracement level (0.8970) of the 0.9320 to 0.8620 decline.
Daily Chart
During the opening of Tuesday’s London session the price went up to 0.9060. That’s above the former highs at 0.9020. Everybody who speculated at a lower top “around” 0.90 and had a tight stop in place got stopped out. Price reversed sharply on risk aversion during the US session when the “USD Consumer Confidence (FEB)” got released and came in below expectations.
If the AUD/USD keeps declining over the coming days the lower top will form out. Price targets/ support levels are at 0.8810 and 0.8650.
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