AUD/USD: technical analysis 31.12.19

Current trend

On the 4-hour chart, the AUD/USD pair shows a moderate positive dynamic. At the moment the price has met the resistance at the level of 0.70063. The general upward trend is still maintained, but the slightly overbought conditions on the chart could be a sign if of downward correction formation.
The breakout of 0.70063 and the pair’s sustained trading above it will let the price grow to the area of 0.70190-0.70496 resistance.

Alternative scenario

The pullback below 0.69885 will be a sign of a downward correction's extension and give a prospect of decline to 0.69670 support area. Should prices continue slipping under 0.67650, the level of 0.69580 might try activating an upward rebound.

Technical indicators

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

Bollinger Bands are pointed upwards.

MACD volumes are in the positive zone.

Stochastic is preparing to exit the overbought zone and is directed downwards, signaling the development of a downward correction.

Support and resistance

Support levels: 0.69885, 0.69680, 0.69580.
Resistance levels: 0.70063, 0.70190, 0.70496.

Trading recommendations

Short positions can be opened below the level of 0.69885 with the target at around 0.69680-0.69580 and stop-loss at 0.69986.
Long positions can be opened above the level of 0.70063 with the target at around 0.70190-0.70496 and stop-loss at 0.69918.

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