The AUD/USD pair set above strong support at the level of 0.7046, which coincides with the 23.6% Fibonacci retracement level. This support has been rejected for four times confirming uptrend veracity. Hence, major support is seen at the level of 0.7046 because the trend is still showing strength above it.
Accordingly, the pair is still in the uptrend from the area of 0.7046 and 0.7168. The AUD/USD pair is trading in a bullish trend from the last support line of 0.7112 towards the first resistance level at 0.7168 in order to test it.
This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Now, the pair is likely to begin an ascending movement to the point of 0.7168 and further to the level of 0.7219.
The level of 0.7389 will act as major resistance and the double top is already set at the point of 0.7389. At the same time, if a breakout happens at the support levels of 0.7112 and 0.7046, then this scenario may be invalidated. But in overall, we still prefer the bullish scenario.
The material has been provided by InstaForex Company - www.instaforex.com