Technical analysis of AUD/USD for November 17, 2020
The AUD/USD pair has faced strong support at the level of 0.7264 because resistance became support. So, the strong support has been already faced at the level of 0.7264 and the pair is likely to try to approach it in order to test it again.
The level of 0.7264 represents a weekly pivot point for that it is acting as minor support this week. Furthermore, the AUD/USD pair is continuing to trade in a bullish trend from the new support level of 0.7264. Currently, the price is in a bullish channel.
According to the previous events, we expect the AUD/USD pair to move between 0.7264 and 0.7341. Also, it should be noticed that the double top is set at 0.7341.
Additionally, the RSI is still signaling that the trend is upward as it remains strong above the moving average (100). This suggests the pair will probably go up in coming hours.
Accordingly, the market is likely to show signs of a bullish trend. This would suggest a bearish market because the moving average (100 & 50) is still in a positive area and does not show any trend-reversal signs at the moment.
In other words, buy orders are recommended above 0.7264 with the first target at the level of 0.7341. If the trend is be able to break the double top at the level of 0.7341, then the market will continue rising towards the weekly resistance 1 at 0.7397.
Thus, the market is indicating a bullish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside.
Moreover, if the pair succeeds in passing through the level of 0.7397, the market will indicate a bullish opportunity above the level of 0.7397. A breakout of that target will move the pair further upwards to 0.7438.
On the other hand, if the AUD/USD pair fails to break through the resistance level of 0.7397 this week, the market will decline further to 0.7264.
The pair is expected to drop lower towards at least 0.7264 with a view to test the weekly pivot point. Also, it should be noted that the weekly pivot point will act as minor support today. But in overall, we still prefer the bullish scenario.
The material has been provided by InstaForex Company – www.instaforex.com