AUD/USD: technical analysis 20.02.20

Current trend

On the 4-hour chart, the price has tested the support level of 0.66393 and was corrected upwards, but the general downward trend maintains. If the "bulls" manage to raise the rate above the level of 0.66528, the correction can continue to the area of 0.66681, then 0.66833 resistance area. Judging by the upward reversal of the Stochastic, this option of price movement is possible during the short-term period.

Alternative scenario

The downward rebound from 0.66528 could lead the price back to 0.66376 level, which seems strong support. Though, sellers will look for successful trading below this mark to reach 0.66223-0.66000 area.

Technical indicators

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

Bollinger Bands are diverging on the background of bearish momentum.

MACD is growing in the negative zone.

Stochastic has left the oversold area and is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 0.66376, 0.66223, 0.66000.
Resistance levels: 0.66528, 0.66681, 0.66833.

Trading recommendations

Short positions can be opened below the level of 0.66376 with the target at around 0.66223-0.66000 and stop-loss at 0.66466.
Long positions can be opened above the level of 0.66528 with the target at around 0.66681-0.66833 and stop-loss at 0.66430.

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