AUDUSD dynamically started losing last week and is continuing the declines also on the beginning of this week. As can be seen in the weekly chart below, the exchange rate was under the key trend line running from the 2016 low.
Currently, the price seems to be heading to a key horizontal support close to 0.7500. What is the situation on the daily chart, however?
Here, the prices closed yesterday under the aforementioned trend line, but also horizontal support near 0.7651. Today, the price tests the lower limit of the wedge formation.
Therefore, it is important what the result of this test will be. Positive, it will signal a potential for rebound, where the nearest resistance is the broken down trend line and the horizontal level 0.7651. On the other hand, there is a trend line/wedge resistance extending from this year’s high.
As there is currently a downward moment, you can look for short-term opportunities to sell after pullbacks. The target will then be around the low at 0.7500.