Yesterday on Aussie there was a successful retest of resistance at 0.7140. This level stopped the increases several times, including for a few days in October. Currently, the baseline scenario assumes a continuation of the declines that have continued since the beginning of December. The closest target for bears is a few dozen pips lower.
Continuation of the downward trend
The price of AUDUSD has fallen by nearly 300 pips since the beginning of December. Along the way, two important supports were broken through – 0.7240 and 0.7140. The latter is now acting as a resistance. The rebound from it makes open way for supply to another 0.7040 support and then to a round level of 0.7000.
On the other hand, if the growths return, the bulls must first defeat 0.7140 and then they can boldly attack 0.7240. In both cases, there are less than a hundred pips to earn. On this pair, there is quite tight in terms of resistance and support, but often stronger moves can overcome several of them at the same time.
