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Amid the strengthening of the US dollar today, AUD/USD is declining in the first half of the trading day. At the time of publication of this article, AUD/USD is traded in the bear market zone, below the key long-term resistance level 0.7300 (EMA200 on the daily and weekly charts).
In case of a breakdown of the local support level 0.7085, the pair is waiting for a further deeper decline inside the descending channel on the daily chart. Its lower limit is below 0.6800. In this case, intermediate targets will be the support levels 0.7037 (Fibonacci 38.2% of the correction to the wave of the pair’s decline from the level of 0.9500 in July 2014 to the lows of 2020 near the level of 0.5510), 0.7000, 0.6970 (the lower limit of the descending channel on the weekly chart).
In an alternative scenario and after the breakdown of important short-term resistance levels 0.7136 (EMA200 on the 1-hour chart), 0.7156 (EMA200 on the 4-hour chart), the upward correction will continue with targets at the resistance levels 0.7170 (EMA50 on the daily chart), 0.7190, 0.7270 (EMA144 on the daily chart). A breakdown of the resistance level 0.7300 may again turn the tide and bring AUD/USD into the bull market zone.
In the meantime, AUD/USD remains in the zone of the global bearish trend. Therefore, short positions should be preferred.
Support levels: 0.7085, 0.7037, 0.7000, 0.6970, 0.6900, 0.6800, 0.6455
Resistance levels: 0.7136, 0.7156, 0.7170, 0.7190, 0.7270, 0.7300
Trading Recommendations
Sell Stop 0.7080. Stop-Loss 0.7160. Take-Profit 0.7037, 0.7000, 0.6970, 0.6900, 0.6800, 0.6455
Buy Stop 0.7160. Stop-Loss 0.7080. Take-Profit 0.7170, 0.7190, 0.7270, 0.7300
