The Australian versus United States dollar currency pair seems to be checking every point of the checklist that promises 0.7587.
The appreciation from the 0.6386 support area managed to climb until the 0.7413 high.
From there, the price dropped under 0.7320 — which the bulls expected to play the role of support — but failed to get above it once more, leading to the depreciation that sent the price back to the 0.7010 ex-resistance area.
However, this time, the 0.7010 level served as support. As a result, the bulls started a rise, but the bears swiftly repelled the bullish march, sending the price, yet again, back to 0.7010.
Still, the bulls were determined. Even more, the false piercing highlighted by the 0.6991 low served as a reason for the bulls to believe that — at least for the time being — they can still pull it off.
And so they did, as 0.7191 was cleared effortlessly by the bulls. Even more, in front of the renewed bearish opposition on November 9, the bulls were able to be victorious, as, on November 24, the price closed above the 0.7320 level.
Nevertheless, the 0.7404 high could have been a challenge for the bulls, as the market participants were entitled to expect a double top — the first top being noted by the 0.7413 high. But the bulls took care of this aspect as well, defining on the chart a new higher high, 0. 7449.
So, as long as the price trades above 0.7320, the bulls eye the 0.7587 resistance. Of course, the psychological level of 0.7500 — not highlighted on the chart — is a partial profit booking area for the buyers.
Only the fall of the price under 0.7320 opens the door to 0.7191.
After the consolidation phase that unfolded above the 0.7236 area, the price managed to pierce the resistance that limited it, 0.7341, respectively.
This made it possible for a new ascending movement to come into being. So, once above the next resistance area, 0.7398, the price validated it as support and extended until the 0.7449 high.
If 0.7460 becomes support, then the bulls can go for 0.7568, with the psychological level of 0.7500 — not plotted on the chart — being a pit stop.
Only if 0.7398 cedes, the 0.7341 may be paid a visit.
Levels to keep an eye on:
D1: 0.7320 0.7587 0.7191
H4: 0.7460 0.7568 0.7398 0.7341
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