20.05.202109:17 Forex Analysis & Reviews: Technical Analysis of AUD/USD for May 20, 2021

Overview :

The AUD/USD pair hit the weekly resistance 2 (1.2224) yesterday. But, it dropped down in order to bottom at the point of 1.2182. Today, the pair is trading above its pivot point.
It is likely to trade in a higher range as long as it remains above the level of 1.2182. Hence, the major support was already set at the level of 1.2182. Moreover, the double bottom is also coinciding around the major support today.
Additionally, the RSI is still calling for a strong bullish market as well as the current price is also above the moving average 100.
Therefore, it will be advantageous to buy above the current level of 1.2182 with the first target at 1.2224 in order to retest the weekly resistance 2 (retest it again).
From this point, if the pair closes above the weekly resistance 1 of 1.2224 on the H1 chart, the AUD/USD pair may resume its movement to 1.2275 to form a new double top.
However, stop loss should always be taken into account, accordingly, it will be beneficial to set the stop loss below the last bearish wave at 1.2132.
On the other hand, if the pair closes below the minor support (1.2132), the price will fall into the bearish market in order to go further towards the strong support at 1.2051. Comment: Also, the double bottom is seen at the level of 1.2051. If the trend is buoyant, then the currency pair strength will be defined as following: AUD is in an uptrend and USD is in a downtrend.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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