FX.co ★ Technical analysis of AUD/USD for December 25, 2020

Overview :

The AUD/USD pair is forming another ascending wave from the area of 0.7550 - 0.7580 in the H1 chart.

The AUD/USD pair currency exchange rate is likely to edge higher during this trading session (25/12/2020).

In the fact, the AUD/USD pair rallied a bit yesterday heading into the holidays. The market looks likely to continue going higher into the new year. Reaching towards the 0.7602 handle.

Today, the AUD/USD pair continues to move upwards from the level of 0.7573.

The first support level is currently seen at 0.7573, the price is moving in a bullish channel now. Furthermore, the price has been set above the strong support at the level of 0.7573, which coincides with the 61.8% Fibonacci retracement level.

Moreover, the RSI starts signaling an upward trend, and the trend is still showing strength above the moving average (100).

Hence, the market is indicating a bullish opportunity above the area of 0.7573. So, the market is likely to show signs of a bullish trend around 0.7573 - 0.7602.

This zone of 0.7573 - 0.7602 has rejected several times confirming the veracity of an uptrend today.

According to the previous events, we expect the AUD/USD pair to trade between 0.7573 and 0.7641.

The market is likely to show signs of a bullish trend around the spot of 0.7573. In other words, buy orders are recommended above the region of 0.7573/0.7602 with the first target at the level of 0.7641; and continue towards 0.7670 (R2) - major resistance stands at 0.7700 (R3).

If we were to break down below the 100 day SMA which sits just below the 0.7552 handle we could see a bit further downside. Longer-term trades do lead that we probably go higher based upon motivation and general against US dollar trading.

Forecast :

According to the previous events the price is expected to remain between 0.7573 and 0.7700 levels in long term.

Buy-deals are recommended above 0.7573 with the first target seen at 0.7641. The movement is likely to resume to the point 0.7670 and further to the point 0.7700.