Technical analysis of AUD/USD for May 19, 2015

Overview:

• In the H4 chart, the support of
  the USD/USD pair was found at the level of 0.7933. Also, it should be noted
  that the ratio of 38.2% Fibonacci retracement levels is coinciding with the
  level of 0.7933. Moreover, a minor resistance is likely to be set at 0.8021 today.
  So, according to the previous proceedings, the AUD/USD pair will move between resistance
  (0.8021) and support (0.7933) in the short term. We expect a range about 88 pips. In consequence,
  if the trend fails to close below the level of 0.7933; for that it will be a
  good opportunity to buy above 0.7933 with the first target at 0.7983, then it
  will be continued straight towards 0.8021 (61.8% Fibonacci retracement levels).
  At the same time, the stop loss should always be taken into account because it
  should never exceed your maximum exposure amounts. Thus, the best location to
  set your stop loss is seen below the level of 0.7910.

Observations:

This week:

• The resistance will be set at the level of 0.8054.
• The support has been already placed at the level of 0.7879.
• We expect a new range about 175 pips this week.
• According to the previous events, the GBP/USD pair is going to move between 0.7870 and 0.8060 this week.
• The key level is seen at 0.7977.

The material has been provided by InstaForex Company – www.instaforex.com