Technical analysis of AUD/USD for December 17, 2020



Overview:


The AUD/USD pair reached 0.7641 now, closing at 0.7641 and touched 0.7601 on Thursday before ending at 0.7641 (new high).

Australian strength has triumphed against a background of dollar weakness.

The AUD/USD pair broke resistance which turned to strong support at the level of 0.7571 yesterday The level of 0.7571 is expected to act as major support today.

The AUD/USD pair is showing signs of strength following a breakout of the highest level of 0.7641.

We expect the AUD/USD pair to continue moving in a bullish trend from the support levels of 0.7571 and 0.7601. Currently, the price is moving in a bullish channel.

This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Consequently, the first support is set at the level of 0.7571 (horizontal blue line).

Therefore, strong support will be found at the level of 0.7571 providing a clear signal to buy with a target seen at 0.7700.

If the trend breaks the minor resistance at 0.7700, the pair will move upwards continuing the bullish trend development to the level 0.7742 in order to test the daily resistance 2.

On the H1 chart. the level of 0.7571 coincides with 61.8% of Fibonacci, which is expected to act as minor support today. Since the trend is above the 61.8% of Fibonacci level, the market is still in an uptrend. But, major support is seen at the level of 0.7525.

Furthermore, the trend is still showing strength above the moving average (100). Thus, the market is indicating a bullish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside.

On the other hand, if the AUD/USD pair fails to break through the resistance level of 0.7700 this week, the market will decline further to 0.7571 with a view to test the weekly pivot point.


The pair is expected to drop lower towards at least 0.7525 . Also, it should be noted that the weekly pivot point will act as good support (key level today).


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