# AUD/USD Short-Term Retracement (February 12, 2014)

Source: https://www.tradersway.com/resources/market-info/aud-usd-short-term-retracement-february-12-2014/
Language: en
Updated: 2014-02-12

AUD/USD made a strong break above a recent resistance level, thanks to reassuring comments from Fed Chairperson Janet Yellen. However, price seems to be stalling around the .9000 major psychological level and might need to make a pullback before resuming its rally.



Stochastic is pointing down from the overbought zone, indicating that a quick selloff may be in the cards. If that’s the case, the pair could dip to the former resistance level, which lines up with the 50% Fibonacci retracement level. If stochastic reaches the oversold region and crosses upward then, it might be a signal for a bounce.



![AUD/USD Short-Term Retracement (February 12, 2014)]



Going long at the 50% Fib or the .8975 area with a stop below the 61.8% Fib or at .8950 and a target of new highs could yield a good return on risk for a short-term trade. Be mindful of the upcoming Australian jobs release though if you’re holding on to the trade until Thursday’s Asian trading session.



*By Kate Curtis from Trader’s Way*