Technical analysis of AUD/USD for December 24, 2019

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Overview:

The AUD/USD pair is continuing trading upwards from the level of 0.6887. Yesterday, the pair rose from the level of 0.6887 to the top around 0.6920. Also, it should be noted that the level of 0.6887 coincides with the ratio of 61.8% Fibonacci retracement levels.

The AUD/USD pair broke resistance at the level of 0.6887 which turned into strong support at the golden ratio.

In the H1 time frame, the level of 0.6887 is expected to act as major support today. Currently, the price is moving in a bullish channel.

This is confirmed by the RSI indicator signaling that we are still in a bullish market. The price is still above the moving average (100) and (50).

From this point, we expect the AUD/USD pair will be continuing to move in the bullish trend from the support level of 0.6887 towards the target level of 0.6940.

The double top is set at the point of 0.6940 at the same time frame.

If the pair succeeds in passing through the level of 0.6940, the market will indicate the bullish opportunity above the level of 0.6940 so as to reach the second target at 0.6969.

On the contrary, in case a reversal takes place and the AUD/USD pair breaks through the support level of 0.6887, a further decline to 0.6801 can occur in order to indicate a bearish market.

Overall, we still prefer the bullish scenario, which suggests that the pair will stay above the zone of 0.6887 today.

The material has been provided by InstaForex Company - www.instaforex.com