FX.co ★ Technical analysis of AUD/USD for January 29, 2021

The AUD/USD pair has faced strong resistances at the levels of 0.7699 because support had become resistance since a week.

So, the strong resistance has already formed at the level of 0.7699 and the pair is likely to try to approach it in order to test it again.

However, if the pair fails to pass through the level of 0.7699, the market will indicate a bearish opportunity below the new strong resistance level of 0.7699 (the level of 0.7699 coincides with a ratio of 61.8% Fibonacci).

Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100) and (50).

Thus, the market is indicating a bearish opportunity below 0.7699 for that it will be good to sell at 0.7699 with the first target of 0.7593.

It will also call for a downtrend in order to continue towards 0.7545. The daily strong support is seen at 0.7545.

On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.7765 (last bullish wave).

Forecast :

If the pair fails to pass through the level of 0.7699, the market will indicate a bearish opportunity below the strong resistance level of 0.7699. In this regard, sell deals are recommended lower than the 0.7699 level with the first target at 0.7593. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 0.7545. On the contrary, stop loss has always been in consideration thus it will be useful to set it above the last double top at the level of 0.7765 (notice that the major resistance today has set at 0.7765).