Australian Dollar rebound stops on test of downtrend resistance
Break of support above 0.72 needed to signal resumption
Short AUD/USD trade remains in play absent confirmed reversal .
The Australian Dollar managed to capitalize as its US counterpart retreated against nearly all of its major counterparts but the dominant downtrend remains intact. Indeed, the upswing conspicuously stopped squarely at resistance defining the descent from the established below 0.82 in January.
Turning to the four-hour chart, the pair is revealed to be sitting at support guiding the upswing from mid-September lows. A break below this barrier – now at 0.7200 – opens the door for a test of the 0.7139-43 area. Trend resistance is now at 0.7285. A daily close above that may precede a test back above 0.74.
The AUDUSD pair pressed negatively on the key support 0.7220 and attempts to settle below it, which hints the price head to activate the scenario in the upcoming sessions, making the bias suggested for the rest of the day, conditioned by the price stability below 0.7280, noting that our next main target is located at 0.7100.
However, should a downside tendency take form again, immediate resistance will likely come from the 20-day ( ) around the 0.7200 round number at the time of writing. A drop below this level would reinforce the downside risk and send prices until the 31-month trough of 0.7084. The next key support to watch is the 0.7000 handle, creating a lower low in the downward trend.
1.We can see that we have a sell sign with the respected strategy which agrees with the overall .
2.Selling is quite high and is going to overcome the mean pretty soon.
3. are protecting the and the .
POSSIBLE SHORT TRADE
ENTRY AT 0.7200
FIRST TARGET AT 0.7100
SECOND TARGET AT 0.7050
STOP LOSS AT 0.72800-0.7300 AREA
THANK YOU FOR SUPPORT!
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Be careful above 0.7280 don't enter short as bulls will be stronger to move the pair to the upside.
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