- AUD/USD retakes 0.71 handle, recovery gains momentum into European Session.
- Rebound seen in gold prices likely supporting the Aussie, recovery may be short lived as USD likely to see further strength.
- Pair has hit channel base and rebounded from lows, RSI is biased higher and has scope to run, Daily Stochs show bullish crossover at oversold levels.
- Long lower wicks on 4-hourly candles and hanging man and doji formations indicate scope for some upside. Pair could test 38.2 % Fib of 0.7385-0.7096 fall at 0.7206.
Recommendation: Long dips around 0.71, SL: 0.7060, TP: 0.72
Resistance Levels:
R1: 0.7145 (Daily Cloud Base)
R2: 0.7160 (Cloud Top, Low Dec 14 & 1)
R3: 0.7183 (100-Day MA)
R4: 0.7206 (38.2 % Fib of 0.7385-0.7096 fall)
Support Levels:
S1: 0.7103 (Daily Low Nov 19)
S2: 0.7096 (Channel base)
S3: 0.7069 (Daily Low Nov 18)
S4: 0.7061 (Daily Low Nov 12)
