The end of last week AUDUSD has closed under a key trend line running from the 2016 low. On the other hand, in the current week, declines are continuing, and the price has already reached levels seen recently in June 2017.
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As you can see on the weekly chart below, the pair now tests the key horizontal support at 0.7500. There was a rebound from this level in December 2017, which brought the price to this year’s maximum at 0.8135.
As the AUDUSD pair is currently declining, traders can look for opportunities to sell after pull backs. Interesting in this case seems to be an area where three significant levels converge:
- a broken line of the upward trend extended from the 2016 minima
- a downward trend line running from this year’s high
- horizontal level S/R close to 0.7651
The occurrence of a bearish signal in this zone would give a high probability of the continuation of declines. The next key horizontal support in which the pair can continue declines is visible on 0.7170.
