AUD/USD: technical analysis 11.10.2019

Current trend

On the 4-hour chart, the instrument is growing along the upper line of the Bollinger Bands. The lack of long-term corrections reflects the strength of the current trend. The price went up above the though resistance 0.67749 and can grow further to the levels of 0.67902-0.68054. The area of 0.67902-0.68054 seem a strong resistance area which can restrict further rise. Further close above 0.68054 level may push AUD/USD more higher towards the area of 0.68137-0.68300. But probably any attempted growth seems more likely to get sold into aggressively near the 0.68054-0.68137.
Alternative scenario. Pullback and price sustained trading below 0.67701 level will let the price fall to the 0.67596 support. The breakdown of this level will be a signal for downward movement formation. In this case, the next targets of sellers will be the level of 0.67444. Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term. Bollinger Bands are diverging on the background of bullish momentum. MACD volumes are growing in the positive zone. Stochastic is ready to left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 0.67749, 0.67596, 0.67444.
Resistance levels: 0.67814, 0.67902, 0.68054.

Trading recommendations

Long positions can be opened above the level of 0.67814 with the target at around 0.67902-0.68054 and stop-loss at 0.67734.
Short positions can be opened below the level of 0.67701 with the target at around 0.67596-0.67444 and stop-loss at 0.67786.

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