AUD/USD: technical analysis 03.06.20

Current trend

AUD/USD pair is in the stage of a downward correction after growing to the level of 0.69829. The price went down below the level of 0.69400 and can fall further to the level of 0.68970. This mark will be the first strong support, which can activate an upward rebound. However, the breakdown of this level will be a signal of the downward correction development and accelerate the plunge towards 0.68600-0.68359 support.

Alternative scenario

The pullback above 0.69580 will let the price re-test today's high 0.69829. The decisive breakout of this level is needed to indicate the upward trend resumption. In this case, the next targets of buyers will be the area of 0.70190 resistance.

Technical indicators

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 is growing in a positive zone.

Stochastic is ready to leave the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 0.68970, 0.68600, 0.68359,
Resistance levels: 0.69580, 0.69829, 0.70190.

Trading recommendations

Short positions can be opened below the level of 0.68970 with the target at around 0.68600 and stop-loss at 0.69093.
Long positions can be opened above the level of 0.69580 with the target at around 0.69880 and stop-loss at 0.69480.

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