AUD/USD is expected to trade with a bullish bias. The pair eventually broke above the key resistance at 0.7380 before rallying further. It has reversed a bearish pattern of lower highs while establishing a bullish trading channel at the same time. Currently, it is trading above the 20-period moving average, which stands above the 50-period one. The intraday outlook has turned very bullish, and the pair is expected to rise toward the first upside target at 0.7475 and the second target at 0.7510 (a reaction high seen on June 24).
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 0.7475 and the second one, at 0.7510. In the alternative scenario, short positions are recommended with the first target at 0.7350 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 0.7300. The pivot point is at 0.8200.
Resistance levels: 0.7475, 0.7510, 0.7580
Support levels: 0.7350, 0.73, 0.7260
The material has been provided by InstaForex Company - www.instaforex.com