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Aussiedollar

AUDUSD — Range-bound with potential upsideAUDUSD is currently trading sideways in a range. A break to the upside, after clearing immediate resistance levels above, could offer a fine long position. Invalidation of this trade idea would be a breakdown below 0.7000. A support level has formed at the 0.7000 level. This level held on three re-tests throughout September-November, after previously acting as resistance in June and July. The equilibrium of the range area is supported by the high volume node in the volume profile. Pure price action also shows that this area is a prominent level, as it has shifted between being support/resistance. The level furthermore coincides with a 38.2% Fibonacci Retracement level, measured on the latest move up, as well as S/R signals on the RSI indicator. Price is presently trading at the higher end of the range. Seemingly, it continues to face resistence at 0.7350, marked with red arrows in the chart. A break above this area would signify strength, and a further break of 0.7415 would likely mean continued moves upwards. DXY displays continued weakness in its price action, which if continued signals for a good long opportunity on the Aussie-Dollar. Keeping an eye on developments here. A strong(er) rejection of the current resistence level could potentially also be used as a basis for swing trading downards towards established support levels within the range.
by amg_nik