FX.co ★ Technical analysis of AUD/USD for December 29, 2020

Overview :

The AUD/USD pair didn't make any significant movements yesterday. There are no changes in our technical outlook. The bias remains bullish in the nearest term testing 0.7642 or higher. Immediate resistance is seen around 0.7642. Due to the upcoming New Year's holidays, the trading working hours of many major financial centers was changed, which affected the trading of the AUD/USD pair notably, because the market is calm and the trend was not clear. 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 0.7703.