FX.co ★ Technical Analysis of AUD/USD for January 21, 2021

Overview :

The AUD/USD pair will continue to rise from the level of 0.7733. The support is found at the level of 0.7733, which represents the 50% Fibonacci retracement level in the H1 time frame.

The price is likely to form a double bottom. Today, the major support is seen at 0.7695, while immediate resistance is seen at 0.7733.

Accordingly, the AUD/USD pair is showing signs of strength following a breakout of a high at 0.7750.

We expect to see a strong reaction off this level to push price up towards 0.7775 before 0.7733 support (50% of Fibonacci retracement, horizontal swing low support).

So, buy above the level of 0.7750 with the first target at 0.7806 in order to test the daily resistance 1 and move further to 0.7828.

Also, the level of 0.7847 is a good place to take profit because it will form a new double top at the same time frame.

Amid the previous events, the pair is still in an uptrend; for that we expect the AUD/USD pair to climb from 0.7733 to 0.7847 in coming five days.

At the same time, in case a reversal takes place and the AUD/USD pair breaks through the support level of 0.7695, a further decline to 0.7625 can occur, which would indicate a bearish market.

Trading recommendations :

• The AUD/USD pair has climbed along a steep, upward-sloping support channel since two weeks, the pair rose at an even more ambitious incline.
• According to the previous events the price is expected to remain between 0.8 and 0.83 levels.
• Buy-deals are recommended above 0.7733 with the first target seen at 0.7806. The movement is likely to resume to the point 0.7825 and further to the point 0.7847.
• However, the decending movement is likely to begin from the level 0.7695 with 0.7660 and 0.7625 seen as targets.