Trade of the Day: AUD/USD

By: Dima Chernovolov

AUD/USD recently broke the 15-minute key resistance level 0.7059, which was previously identified by Autochartist. Autochartist rates the significance of this resistance level at the 3-bar level – which is the result of the 3 earlier price reversals from this price level. AUD/USD is expected to rise toward the forecast price 0.7090 – in line with the earlier upward reversal from the support area shown below.

As can be seen from the daily AUD/USD chart below, the price earlier reversed up from the support area located between the key round support level 0.7000 (former powerful resistance from June) and the 38.2% Fibonacci correction of the sharp upward price impulse from May. The proximity of this support area increases the probability AUD/USD will continue to rise toward the forecast price 0.7090.