AUD/USD, H4

On the four-hour chart, the AUD/USD pair is moving in an uptrend around 0.6725, and the strengthening of the dynamics is facilitated by the construction of the Three Advancing White Soldiers candlestick analysis pattern in the range of 0.6542–0.6725. In addition, the asset’s quotes consolidated above the support level of 0.6662, creating the Hammer and Inverted Hammer patterns, which act as support for the "bulls". An increase in quotes towards the resistance level of 0.6788 and its further overcoming will allow them to consolidate above the range of 0.6900–0.7005; however, in the event of consolidation below the level of 0.6662, the "bears" may develop a movement to the area of 0.6542–0.6444.

AUD/USD, D1

On the daily chart, one can see the formation of a large Bullish Flag price pattern, within which a Morning Star pattern has formed at the level of 0.6542. The exit of the price from the Flag in the form of a Bullish Marubozu candlestick pattern is confirmation of the growing strength of buyers and suggests further movement of quotes up to the level of 0.6900. Overcoming the level of 0.6788 will open the opportunity to open long positions with targets of 0.6900–0.7005.

Support and resistance

Support levels: 0.6662, 0.6542, 0.6444.

Resistance levels: 0.6788, 0.6900, 0.7005.

Trading tips

Long positions can be opened above 0.6788 with targets at 0.6900, 0.7005. Stop-loss — 0.6725. Implementation time: 9-12 days.

Short positions can be opened below the level of 0.6662 with targets at 0.6542, 0.6444. Stop-loss — 0.6725.