05.11.201914:37 Forex Analysis & Reviews: Technical analysis of AUD/USD for November 05, 2019

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Overview:

The resistance of AUD/USD pair has broken; it turned to support around the price of 0.6885 yesterday.

Thereby, forming a strong support at 0.6885. The level of 0.6885 coincides with the golden ratio (61.8% of Fibonacci retracement) which is acting as major support today.

Another thought; the Relative Strength Index (RSI) is considered overbought because it is above 30.

At the same time, the RSI is still signaling an upward trend, as the trend is still showing strong above the moving average (100), this suggests the pair will probably go up in coming hours.

Accordingly, the market will probably show the signs of a bullish trend. In other words, buy orders are recommended above 0.6885 level with their first target at the level of 0.6931.

The price of 0.6931 will act as a strong resistance and the double top has already set at the point of 0.6931. From this point, the pair is likely to begin an ascending movement to the point of 0.6931 and further to the levels of 0.6960 and 0.6990.

On the other hand, if a break happens at the support of 0.6856, then this scenario may become invalidated.

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