AUD/USD:
The Australian dollar gained 44 pips yesterday, approaching the target level of 0.6388. The bullish momentum stalled at the balance indicator line on the daily chart. Perhaps the nearest resistance is slightly lower, for example, at the lows of August 25th and September 13th at 0.6383, but even in that case, the price would still be 3 pips away from it.
Nevertheless, it is possible for the price to rise further after overcoming the level of 0.6388, the daily balance indicator line, and the Marlin oscillator stabilizing in the positive territory. Technical instruments have the prerequisites for this, especially the convergence between the price and the Marlin oscillator. The nearest bullish target is 0.6472 – the MACD indicator line. Beyond that, the level of 0.6514 may be tested. We will eventually find out whether this will be a false breakout of the MACD line with a return below 0.6472 and a decline to 0.6388, or if the price will continue to rise to 0.6612.
On the 4-hour chart, the Marlin oscillator has moved into the uptrend territory. Now Marlin is helping the price overcome the resistance of the MACD indicator line. Staying above the 0.6388 level opens up the next target of 0.6472.
To develop an alternative scenario, the price will have to do much more work – to overcome the support level at 0.6295, preferably with consolidation, and then the target of 0.6171 will be in focus.
