Where to from 0.7571 on AUD/USD?

The Australian versus the US dollar currency pair convinced everybody that is on the bullish side. However, are the bears going to just wait and see?

Long-term perspective
After the correction that spans from the 0.7413 high to the 0.6991 low ended, a new ascending movement came into being.
From the 0.6991 low, the movement extended, in the first instance, to the 0.7320 level. Even if it oscillated above 0.7320, it was a brief moment, as the bears attempted to cause the price to drop, as the pin bar on November the 9th and the bearish candle on November the 12th show.
Still, the bulls, undeterred, insisted on pushing the price to the north, as a result forming a consolidative phase just beneath 0.7320.
On November the 24th, the bulls pierced the 0.7320 resistance, accomplishing to close the candle above the level, thus not only validating the role change of 0.7320 to support but also invalidating the pin bar for good.
Still, at the next resistance, 0.7453, the bears continued to be defensive, trying to cause the price to stall. Nevertheless, once again, the bulls printed a convincing candle, one that stopped relatively close to the next resistance area, 0.7587, at the 0.7571 high.
As long as 0.7453 remains support, any depreciation is seen by the bulls as a new opportunity to drive the price higher, which, if they do, translates into 0.7587 becoming a support area, which in turn opens the door to 0.7744.
On the flip side, if 0.7453 cedes, then 0.7320 is the next target.

Short-term perspective
After noting the 0.7221 low, which, as a false piercing of 0.7236, validated the level as support, the ascending movement extended until the 0.7571 high.
After a consolidation phase beneath 0.7568 or after a throwback to 0.7460, the price may confirm 0.7568 as support. If this happens, in the light of those discussed for the long-term, the next target is 0.7744, with the psychological level of 0.7600 — no highlighted on the chart — acting as an intermediate profit booking area.
However, if 0.7460 gives way, then the bears could push the price until 0.7398.

Levels to keep an eye on:

D1: 0.7453 0.7587 0.7744 0.7320
H4: 0.7568 0.7460 0.7600 0.7398

If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Original from: www.earnforex.com