AUD/USD technical analysis: the pair moved into a bearish zone
Our preference: short positions below 0.7095 with targets at 0.7060 & 0.7040 in extension.Alternative scenario: above 0.7095 look for further upside with 0.7115 & 0.7135 as targets.
The Aussie dollar declined heavily after it was rejected near the 0.7165 level against the
US Dollar. The AUD/USD pair traded below the 0.7120 and 0.7100 support levels to move into a bearish zone.
There was even a close below the 0.7100 level and 50 hourly simple moving average. A swing low was formed at
0.7065 on FXOpen UK and later the pair started an upside correction. However, there is a strong resistance near the 0.7080 level and a bearish trend line on the hourly chart.
It seems like the pair might climb above the trend line to test the 0.7090 resistance and the 50%
Fibonacci retracement level of the last decline from the 0.7114 high to 0.7065 low.
Overall, the AUD/USD pair might correct higher in the short term, but it is likely to face sellers near 0.7090 or 0.7100.