Overview :
The AUD/USD pair continues to move upwards from the level of 0.7660. Yesterday, the pair rose from the level of 0.7660 (the level of 0.7660 coincides with the last bearish wave) to a top around 0.7725.
Today, the first support level is seen at 0.7660 followed by 0.7625, while daily resistance 1 is seen at 0.7751.
According to the previous events, the AUD/USD pair is still moving between the levels of 0.7660 and 0.7806; for that we expect a range of 146 pips (0.7806 - 0.7660).
On the one-hour chart, immediate resistance is seen at 0.7751, which coincides with a ratio of 61.8% Fibonacci retracement. Currently, the price is moving in a bullish channel.
This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. The price is still above the moving average (100) and (50),
Therefore, if the trend is able to break out through the first resistance level of 0.7751, we should see the pair climbing towards the daily resistance 2 at 0.7806 to test it.
It would also be wise to consider where to place stop loss; this should be set below the second support of 0.7625.
Conclusion :
The daily pivot pint sets at the point of 0.7733. If the trend is able to break out through the first resistance level at 0.7751, we should see the pair climbing towards the double top (0.7806) to test it.
Therefore, buy above the level of 0.7733 with the first target at 0.7751 in order to test the daily resistance 1 and further to 0.7806. Also, it might be noted that the level of 0.7806 is a good place to take profit because it will form a double top.
On the other hand, in case a reversal takes place and the AUD/USD pair breaks through the support level of 0.7625, a further decline to 0.7603 can occur which would indicate a bearish market.
