The AUD/USD (Australian Dollar/US Dollar or Aussie) pair has plunged up for a fresh two weeks high. Prices pushed above a key retracement from a Fibonacci setup that spans from the lowest price of 0.6838 (61.8% of Fibonacci on the hourly chart), for that buyers pulled the bid back-above that level by the end of the week.
Yesterday the AUD/USD pair traded up and closed the day in the red area near the price of 0.6838. Today it rose a little, rising above 0.6890.
On the hourly chart, the AUD/USD pair continues to test the strength of the resistance - the moving average line MA (100) H1 (0.6878).
On the four-hour chart, the AUD/USD pair is also still above the MA 500 H4 line. Based on the above, it is probably worth sticking to the north direction in trading, and as long as the the AUD/USD pair remains below MA 50 H4, it may be necessary to look for entry points to buy at the end of the correction.
The AUD/USD pair faced resistance at the level of 0.7000, while minor resistance is seen at 0.6933. Support is found at the levels of 0.6838 and 0.6769.
Also, it should be noted that a daily pivot point has already set at the level of 0.6838. Equally important, the AUD/USD pair is still moving around the key level at 0.6838, which represents a daily pivot in the H1 time frame at the moment.
That elongated wick on the underside of last week's candle has led to a continued bullish run so far this week, and prices have broken out of a rising wedge formation, which keeps the gate open for bullish continuation strategies.
Yesterday, the AUD/USD pair continued to move upwards from the level of 0.6838. The pair rose from the level of 0.6838 (this level of 0.6838 coincides with the key level of the golden ration 61.8%) to the top around 0.6933.
In consequence, the AUD/USD pair broke resistance, which turned strong support at the level of 0.6838. The level of 0.6838 is expected to act as major support today.
From this point, we expect the AUD/USD pair to continue moving in the bullish trend from the support level of 0.6838 towards the target level of 0.6933.
If the pair succeeds in passing through the level of 0.6933, the market will indicate the bullish opportunity above the level of 0.6933 in order to reach the second target at 0.7000.
On the other hand, in the very short term the general bullish sentiment is confirmed by technical indicators. Therefore, a small upwards rebound in the very short term could occur in case of excessive bearish movements.