AUD/USD is expected to trade with a bullish bias above 0.7370. Though the pair slumped to a day-low of 0.7302 on Friday, it rebounded to a reaction high of 0.7510 before encountering resistance. Currently, it remains in a consolidation phase while trading above the key support at 0.7370. The intraday relative strength index stands below the neutrality level of 50 showing the possibility of a continued consolidation. In case the pair emerges on the upside upon finishing the consolidation, it could re-test the first upside target at 0.7510.
Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.7510 and the second one at 0.7580. In the alternative scenario, short positions are recommended with the first target at 0.7300 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7260. The pivot point is at 0.737.
Resistance levels: 0.7510, 0.7580, 0.7615
Support levels: 0.73, 0.7260, 0.72
The material has been provided by InstaForex Company - www.instaforex.com