17.06.202014:08 Forex Analysis & Reviews: Technical analysis of AUD/USD for June 17, 2020

Overview:

The trend of AUD/USD pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 0.6782 and 0.7040. The AUD/USD pair broke resistance which turned to strong support at the level of 0.6882 last week. The level of 0.6882 coincides with a golden ratio (61.8% of Fibonacci), which is expected to act as major support today. The Relative Strength Index is considered overbought because it is above 70. The RSI is still signaling that the trend is upward as it is still 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. In other words, buy orders are recommended above 0.6882 with the first target at the level of 0.7040. The level of 0.7040 will act as strong resistance and the double top is already set at the point of 0.7040. From this point, the pair is likely to begin an ascending movement to the point of 0.7040 and further to the level of 0.7099. On the other hand, if a breakout happens at the support level of 0.6830, then this scenario may become invalidated.