Technical analysis of AUD/USD for October 1, 2020

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Overview :

  • Pair : AUD/USD (Australian dollar/US dollar).
  • The main trend : Bearish.
  • The secondary trend : Bullish.
  • Volatility : High.
  • Forecast bias : Uptrend in short term.

Australian dollar has shown slight gains against US dollar during today's Euro session. The AUD/USD pair traded between 0.7007 and 0.7150, it reached 0.7150, which was the highest price for the pair on record since 25th September 2020.

The AUD/USD pair may grow in coming hours because the development of the first wave of the lower level of 0.7007 to continue towards the new top of 0.7150.

MACD is reversing upwards preserving a buy signal. It is seeing major support above the price of 0.7082 where we expect further upside movement from.

Moreover, RSI (14) sees a bearish exit of our climbing resistance-turned-support line signalling that it will likely be seeing some bullish momentum 0.7082 - 0.7100.

It seems that the AUD/USD pair has completed the correction pattern therefore buyers can buy from the support levels of 0.7007, 0.7082 and 0.7100.

A rebound from 0.7082 as from resistance, followed by a breakup of 0.7082 may become a signal for new purchase with the first target at 0.7204. The golden ration is set at the level of 0.7204 On the H1 chart.

Furthermore, the Fibonacci 23.6% retracement of the entire rally between 0.7082 and 0.7204 is also seen towards 0.7255 levels.

It should be noted that another point of convergence is that previous resistance turned support is around 0.7082 sign. Probabilities remain high for a bullish bounce if prices reach there again.

In other words, buy orders are recommended above spot of 0.7080 with the first target at the level of 0.704. Additionally, if the trend is able to break through the first resistance of 0.7080. As a result, the pair will climb towards the double top (0.7325) to test it.

On the contrary, stop loss should always be in account. In consequence, it must set the stop loss below the second support level of 0.7007 (last bearish wave).

Conclusion (Signal) :

  • Bullish forecast.
  • Buy above the level of 0.7080.
  • Take profit 1 : 0.7204
  • Take profit 2 : 0.7255
  • Take profit 3 : 0.7320
  • Stop loss : 0.7007
  • Expected range of the AUD/USD pair : 0.7080 and 0.7320 (240 pips).
  • Implementation period: 1 - 2 days.

Technical levels:

  • Resistance 3 : 0.7325
  • Resistance 2 : 0.7255
  • Resistance 1 : 0.7204
  • Pivot Point : 0.7082
  • Support 1 : 0.7007
  • Support 2 : 0.6925
  • Support 3 : 0.6860

Technical tips:

  • Bulls are bidding at a lower price. Then it should become a bull's investor who believes that trend will rise because the market will be called for a bullish market (uptrend). Therefore, buy at a low price (bottoms).
  • Buying happens in a long amount of time.
  • Buy inexpensive and sell expensive.
  • The stop loss should always be taken into account.
The material has been provided by InstaForex Company - www.instaforex.com