The Australian dollar showed strong growth yesterday, supported by the growth of oil and gold: oil grew by 1.01%, gold by 0.73%. However, the growth occurred at the lowest daily volumes for the last 12 months, that is, even less than the Christmas period last year, according to the Marlin oscillator, a reversal divergence is being prepared - the price yield over the embedded price channel line can already be determined as false.
With the price leaving yesterday's low, the 0.6846 target opens - the point of coincidence of the MACD line with the underlying embedded line of the price channel.
On the four-hour chart, the main support is the MACD line (0.6915). Consolidating the price below it can strengthen the aussie's decline.
The movement of the Australian dollar AUD / USD from December 27, 2019 will also occur depending on the development and the direction of breakdown of a narrow range:
resistance level of 0.6930 (the lower boundary of the 1/2 Median Line channel of the Minuette operational scale forks); support level of 0.6925 (the lower boundary of the channel 1/2 Median Line of the Minuette operational scale forks).
In the event of a breakdown of the support level of 0.6925, the development of the Australian dollar will begin to flow again in the 1/2 Median Line (0.6925 - 0.6900 - 0.6875) of the Minuette operational scale forks with the prospect of reaching the SSL Minuette start line (0.6855).
On the other hand, in case of breakdown of the resistance level 0.6930 - it will lead to an option for the development of the AUD / USD movement in the 1/2 Median Line channel (0.6930 - 0.6945 - 0.6960) of the Minuette operational scale forks with prospect.
Now, after the breakdown of the above levels of this channel - the price of the instrument will try to reach the boundaries of the equilibrium zone (0.6965 - 0.7000 - 0.7040) of the Minuette operational scale forks.
We look at the layout of the AUD / USD movement options on the animated chart from December 27, 2019.
For the Australian dollar / US dollar pair, the key levels on the H1 scale are : 0.7039, 0.7007, 0.6994, 0.6975, 0.6962 and 0.6944. Here, we are following the development of the upward cycle of December 18. At the moment, the price is in the correction zone. Short-term upward movement, as well as consolidation are expected in the range of 0.6994 - 0.7007. For the potential value for the top, we consider the level of 0.7039. Upon reaching this level, we expect a pullback.
Short-term downward movement is expected in the range 0.6975 - 0.6962.
The breakdown of the last value will lead to an in-depth correction. Here, the target is 0.6944.
This level is a key support for the top. The main trend is a local upward cycle of December 18, the correction stage
Buy: 0.6995 Take profit: 0.7006 Buy: 0.7010 Take profit: 0.7030 Sell : 0.6975 Take profit : 0.6964 Sell: 0.6960 Take profit: 0.6946