FX.co ★ Technical analysis of AUD/USD for May 31, 2022

Overview :

The AUD/USD pair continues to move upwards from the level of 0.7149. Yesterday, the pair rose from the level of 0.7149 to a top around 0.7180.

Today, the first resistance level is seen at 0.7205 followed by 0.7245, while daily support 1 is seen at 0.7108 (61.8% Fibonacci retracement).

According to the previous events, the AUD/USD pair is still moving between the levels of 0.7149 and 0.7205; so we expect a range of 54 pips at least.

Furthermore, if the trend is able to break out through the first resistance level at 0.7205, we should see the pair climbing towards the double top (0.7205) to test it.

Therefore, buy above the level of 0.7149 with the first target at 0.9990 in order to test the daily resistance 1 and further to 0.7205.

Also, it might be noted that the level of 0.7205 is a good place to take profit because it will form a double top as a first target.

In the H1 time frame, the RSI and the moving average (100) are still pointing to the upside. Thus, the market indicates a bullish opportunity at the level of 0.7205.

The market is still in an uptrend. We still prefer the bullish scenario. Next objectives 0.7245 and 0.7274

On the other hand, in case a reversal takes place and the AUD/USD pair breaks through the support level of 0.7149, a further decline to 0.7078 can occur which would indicate a bearish market.