Ransquawk

AUDJPY has been falling dynamically since the beginning of the year when it rebounded from the key resistance zone around 89.00. As can be seen in the weekly chart below, during the falls, the course defeated support around 84.32 and went to the next defence level close to 81.50.

It even seemed that the support zone was effectively broken when one of the weekly candles in the second half of March closed significantly lower than 81.50. However, in the following weeks, the declines were not continued. The price returned above support and even reached the area around the resistance at 84,32, which previously acted as support.

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After a rebound from the resistance, we were witnessing a move to the south, which last week led to another test of support at 81.50. As a result of this test, a bullish pinbar was formed on the weekly chart indicating a potential for growth.

Having in mind the above, there is a chance for another attack on the resistance zone at 84.32. If buyers could defeat it, they will open their way to the key level of 89.00, where this year’s maximum was set.

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