Technical analysis of AUD/USD for July 17, 2022

Overview :

The AUD/USD pair broke resistance which turned to strong support at the level of 0.6733 last week.

The level of 0.6733 coincides with an important ratio (23.6% of Fibonacci), which is expected to act as major support today.

The Relative Strength Index (RSI) is considered overbought because it is above 50. The RSI is still signaling that the trend is upward as it is still strong above the moving average (100).

This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend.

In other words, buy orders are recommended above 0.6815 (red line) with the first target at the level of 0.6850.

From this point, the pair is likely to begin an ascending movement to the point of 0.6897 and further to the level of 0.6960.

The level of 0.6960 will act as strong resistance and the double top is already set at the point of 0.7000.

On the other hand, if a breakout happens at the support level of 0.6683, then this scenario may become invalidated.

Key levels :

Resistance levels : 0.6850 - 0.6897 - 0.6960

Pivot : 0.6815

Support levels : 0.6733 - 0.6683 - 0.6600