Technical outlook and chart setups:
The AUD/USD pair broke out the buy zone of the dropping resistance trend line earlier this month. Now it has retraced lower in order to test the same (which should be support now) zone around 0.6990/0.7000 as seen on the daily chart. The pair should remain under bullish control as long as prices stay above the levels of 0.6850. It is hence recommended to initiate long positions now with risk at 0.6850. Immediate support is seen at 0.6930 (interim), followed by 0.6900 and lower, while resistance is seen at 0.7400/50 and higher.
Trading recommendations :
Initiate long positions with stop at the levels of 0.6850, a target is at 0.74/75.
The material has been provided by InstaForex Company – www.instaforex.com