Overview:
- The AUD/USD pair rose from the strong level of 0.6977 and extended further to as high as 0.7038 yesterday, and it has closed at the 0.7030 level today. Support will be formed at 0.6980 because this level has also formed a double bottom. Furthermore, the price was set above the double bottom two weeks ago. So we expect a saturation around the level of 0.6970. Hence, the market is likely to start showing signs of a bullish bias again from this spot in order to indicate a bullish opportunity from the level of 0.6976 (11.8% of Fibonacci retracement levels on the H1 chart). Accordingly, buy above the level of 0.6976 with the first target at 0.7069. Besides, it will call for an uptrend in order to continue bullish movement towards 0.7102 in coming hours. On the other hand, if bulls are forced to pull back below the level of 0.6970 and sellers can break this level, the best solution to set a stop loss will be at the price of 0.6952.
Observations:
- We expect a new range of about 126 pips.
- The key level will be at 1.7017 which represents the daily pivot point.
- The support of the AUD/USD pair has already been set at 0.6976. Moreover, the weekly support 1 will be set at the same level.
- If the trend fails to close below the level of 0.6976, it will be a good opportunity to buy above 0.6976 with the first target at 0.7069. Then, it will be continue straight towards 0.7102.
