Overview:
- The AUD/USD pair broke major resistance at the level of 0.7215 last week. But the level of 0.7215 became strong support for last week of December 2015. Also, it should be noted that the weekly pivot point is seen at 1.2933. Therefore, the pair will probably start an downside movement in this area and recover again. So, the market will indicate a bearish opportunity at the level of 0.7283 serving as a good sign to sell at this spot with the first target at 0.7283, and continue towards 0.7243 and 0.7215 in order to test the double bottom. On the other hand, if a breakout of 0.7283 happens, then it will be a good location for placing the stop loss order.
Observation
- An uptrend is observed in the market. Moreover, the trend was so clear because the price moved higher to 0.7283; but the AUD/USD pair has been rebounding lower towards the level of 0.7266.
- The double bottom is set at the level of 0.7215.
- We expect a trading range between 0.7215 and 0.7283 pips today. The level of 0.7215 is the key level to confirm the bullish market.
