AUDUSD — Range-bound with potential upside

AUDUSD is currently trading sideways in a range. A break to the upside, after clearing immediate resistance levels above, could offer a fine long position. Invalidation of this trade idea would be a breakdown below 0.7000.

• A support level has formed at the 0.7000 level. This level held on three re-tests throughout September-November, after previously acting as resistance in June and July.
  
  
• The equilibrium of the range area is supported by the high volume node in the volume profile. Pure price action also shows that this area is a prominent level, as it has shifted between being support/resistance. The level furthermore coincides with a 38.2% Fibonacci Retracement level, measured on the latest move up, as well as S/R signals on the RSI indicator.
  
  
• Price is presently trading at the higher end of the range. Seemingly, it continues to face resistence at 0.7350, marked with red arrows in the chart. A break above this area would signify strength, and a further break of 0.7415 would likely mean continued moves upwards.
  
  
• DXY displays continued weakness in its price action, which if continued signals for a good long opportunity on the Aussie-Dollar.
  

Keeping an eye on developments here. A strong(er) rejection of the current resistence level could potentially also be used as a basis for swing trading downards towards established support levels within the range.