AUD/USD uptrend remains valid after trendline rejection

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Updated: 17 June 2020

Hello traders! The AUD/USD uptrend might be about to continue, since price cleanly rejected the uptrend trendline on the June 12. Then it attempted to break lower but only produces the spike, failing to close below the 0.6800 key psychological support.

Yesterday AUD/USD rejected the 50 Exponential Moving Averages as well as 23.6% Fibonacci retracement level applied to the 9-12 June corrective wave down. And yet again price failed to close below the uptrend trendline.

Therefore, while the 4h closing price remains above the 0.6800 uptrends should remain valid and price can be expected to rise further. Although before/if producing a new higher high, there are a few obstacles to overcome. These are Fibonacci based resistance levels, which, if rejected, could confirm the trend reversal to the downside.

There are two important levels to watch, first being the 78.6% Fibs at 0.6990. The second level is the most important one since it corresponds to two Fibonacci levels, 88.6% and 127.2% Fibs applied to the current corrective wave down. Both of them are pointing our to the 0.7015 resistance, and perhaps his will be the decision-making point for AUD/USD. Because daily break above might confirm the long term uptrend continuation, but rejection could result in a trend reversal.

Bias: Strongly bullish while below 0.6800

Potential Support Zone: 0.6630 – 0.6660

Potential Targets: 0.6990, 0.7015

Have a profitable trading!