Weakness of demand
AUDUSD on February 23 after an unsuccessful attempt to break resistance level at 0.7720 began downward movement which is still continued . Although for last 3 days price rose correcting earlier declines, but this movement managed only slightly exceed the abolition of 38.2% of previous bearish movement. Today supply again returned to the force, pushing price more than the monthly minimum.
Scenarios for support 0.7530
Currently, AUDUSD is testing support at 0.7530. This level has not been broken since Jan. 20. If at this point we will see a rejection than immediate goal of growth is resistance area 0.7600 – 0.7620. However, if the winner will be supply than we can expect continuation of earlier downward move after breaking the 0.7530. Next support levels are located at: 0.7500, 0.7440, 0.7320.
We should therefore focus now on level 0.7530. To confirm reflection or breakout you can use techniques of Price Action.
