AUD/USD takes channel support, could test 0.7183
AUD/USD retakes 0.71 handle, recovery gains momentum into European Session.
Rebound seen in gold prices likely supporting the Aussie, recovery may be short lived as USD likely to see further strength.
Pair has hit channel base and rebounded from lows, RSI is biased higher and has scope to run, Daily Stochs show bullish crossover at oversold levels.
Long lower wicks on 4-hourly candles, hanging man and doji formations indicate scope for some upside. Pair could test 38.2 % Fib of 0.7385-0.7096 fall at 0.7206.
We would long dips around 0.71, SL: 0.7060, TP1: 0.7180, TP2: 0.72
Resistance Levels:
R1: 0.7145 (Daily Cloud Base)
R2: 0.7160 (Cloud Top, Low Dec 14 & 1)
R3: 0.7183 (100-Day MA)
R4: 0.7206 (38.2 % Fib of 0.7385-0.7096 fall)
Support Levels:
S1: 0.7103 (Daily Low Nov 19)
S2: 0.7096 (Channel base)
S3: 0.7069 (Daily Low Nov 18)
S4: 0.7061 (Daily Low Nov 12)
Rebound seen in gold prices likely supporting the Aussie, recovery may be short lived as USD likely to see further strength.
Pair has hit channel base and rebounded from lows, RSI is biased higher and has scope to run, Daily Stochs show bullish crossover at oversold levels.
Long lower wicks on 4-hourly candles, hanging man and doji formations indicate scope for some upside. Pair could test 38.2 % Fib of 0.7385-0.7096 fall at 0.7206.
We would long dips around 0.71, SL: 0.7060, TP1: 0.7180, TP2: 0.72
Resistance Levels:
R1: 0.7145 (Daily Cloud Base)
R2: 0.7160 (Cloud Top, Low Dec 14 & 1)
R3: 0.7183 (100-Day MA)
R4: 0.7206 (38.2 % Fib of 0.7385-0.7096 fall)
Support Levels:
S1: 0.7103 (Daily Low Nov 19)
S2: 0.7096 (Channel base)
S3: 0.7069 (Daily Low Nov 18)
S4: 0.7061 (Daily Low Nov 12)
Trade closed: target reached
