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Bulls Carving Their Way to 0.7013 on AUD/USD

December 12, 2019 at 8:21 by Dorin Rosu

The Australian dollar versus the US dollar currency pair appreciated in a very impressive fashion. Is it too late to hop on board? Are the bears preparing a surprise?

Long-term perspective

From 0.6670 and given the next low — 0.6753, respectively, which is a higher low — and the two highs, from which the second one is a higher high — 0.6894 and 0.6929, respectively — the market is in an ascending trend.

The movement that started from 0.6753 should be considered an impulsive swing and, until now, it played its role flawlessly, as it managed to pierce the 0.6890 resistance area.

Given the strong piercing of the 0.6890 level, which was followed by the departure of the price, and the piercing of the trendline that starts from 0.6894, respectively, the bulls have all the reasons to consider that they dominate the market.

Another important argument for the bulls is that on December 11, they managed to print a strong candle, one that engulfed the previous six and extended at 0.6889.

The only amendment would be that the appreciation stopped just under the psychological level of 0.6900, but considering the determination of the bulls, overcoming it is just a matter of time.

The next step is to wait for the price to extend beyond the previous higher high — 0.6929. Along this way, the bulls can join, targeting 0.7013. So, as long as the price oscillates above 0.6850, further appreciation is to be expected, aiming for the aforementioned target. Of course, this is an opportunity more suitable for an aggressive approach.

Only if the price gets back under 0.6850, then the attention shifts towards 0.6800.

Short-term perspective

After confirming the 23.6 projection of the Fibonacci retracement, the price rallied. That was followed by a consolidation limited by 0.6855 as resistance and 38.2 as support, respectively.

Then a new movement to the upwards took place and the price pierced 50.0. It is possible for a short-lived consolidation to crystalize, one that will take the shape of a bullish flag.

So, as long as the price oscillates above 50.0 or retraces towards 0.6855 and confirms it as support, 0.6933 is in reach.

Only if 38.2 is confirmed as resistance, then the situation will turn neutral.

Levels to keep an eye on:


D1: 0.6850 0.7013 0.6800
H4: 0.6855 0.6933 Fibonacci projections of 23.6 50.0

If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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