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AUD/USD: technical analysis 11.08.20

Current trend

On the 4-hour chart, the price has tested the 0.71847 resistance level (the midline of Bollinger Bands) but cannot break through it. Now we can see the downward correction development. The first support for the pair is located on a 0.71716 level. The breakdown of this mark and a sustained move below 0.71564 will confirm the downward correction trajectory and let the price re-test today low at 0.71441 mark. There is a chance of an upward rebound. However, the breakdown of the 0.71411 level will be a signal of the downward trend resumption and let the price decline to the area of 0.71106.

Alternative scenario

If the "bulls" manage to raise the rate above the level of 0.71847, the growth can continue to the area of 0.72021. This level seems a strong resistance which can activate a downward rebound of the price. One may speak about upward movement continuation after the price consolidates above the resistance level of 0.72080. In this case, the next targets of buyers will be the level of 0.72327-0.72424.

Technical indicators

Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term.

Bollinger Bands are pointed downwards.

MACD volumes are decreasing in the negative zone.

Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 0.71716, 0.71411, 0.71106.
Resistance levels: 0.71847, 0.72021. 0.72327.

Trading recommendations

Short positions can be opened below the level of 0.71411 with the target at around 0.71106 and stop-loss at 0.71500.
Long positions can be opened above the level of 0.72080 with the target at around 0.72327-0.72400 and stop-loss at 0.71973.

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