The dollar continues to decline at the beginning of the new week largely determining the dynamics of the main dollar "major" currency pairs. The same can be said about the dynamics of AUD/USD. This currency pair is rising, developing upward momentum above the important short-term support levels 0.6942 (200 EMA on the 1-hour chart) and 0.6922 (200 EMA on the 4-hour chart).
Technical indicators OsMA and Stochastic on the daily and weekly charts are also on the buyers' side.
The targets of this upward correction so far are the key resistance levels 0.7100 (144 EMA on the daily chart) and 0.7150 (200 EMA on the daily chart).
Below these resistance levels, AUD/USD is still in the bear market zone. Only a breakdown of the long-term resistance level of 0.7280 (200 EMA on the weekly chart) will bring the pair into a long-term bull market zone.
Between the resistance levels of 0.7100, 0.7150, the upper limit of the descending channel on the weekly chart also passes. Thus, a high probability of a rebound and resumption of the downward dynamics of AUD/USD in this zone.
An earlier signal to resume short positions will come after the price returns inside the descending channel on the daily chart, the upper limit of which passes through 0.7000. A confirmation signal will be a consistent breakdown of support levels 0.6960 (50 EMA on the daily chart), 0.6942, and 0.6922.
If this scenario is activated, then after the breakdown of the support level of 0.6900, the targets for the decline will be the local support levels of 0.6850, 0.6800, 0.6700, 0.6685 (the low of July and this year).
It is likely that market participants will more accurately determine the direction of trading in AUD/USD tomorrow when at 04:30 (GMT), the decision of the RBA on the interest rate will be published.
Support levels: 0.7000 0.6960 0.6942 0.6922 0.6900 0.6850 0.6800 0.6700 0.6685 0.6660 0.6500 0.6455 0.6270 0.5975 0.56510
Resistance levels: 0.7037, 0.7100, 0.7150, 0.7200, 0.7280
Trading Tips
Sell Stop 0.6985. Stop-Loss 0.7055. Take-Profit 0.6960, 0.6942, 0.6922, 0.6900, 0.6850, 0.6800, 0.6700, 0.6685, 0.6660, 0.6500, 0.6455, 0.6270, 0.5975, 0.5665, 0.5510
Buy Stop 0.7055. Stop-Loss 0.6985. Take-Profit 0.7100, 0.7150, 0.7200, 0.7280