For more than a week we have seen signs of consolidation on Aussie. The price of the Australian dollar is moving in a very small range. This is, of course, one of the effects of the Christmas period. Perhaps this week there will be an attack on a round level of 0.7000. However, before this happens, bears have to deal with 0.7040 support, which can be the first stop before the psychological barrier of 40 pips lower.
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Declines below 0.70 already in January?
December for AUDUSD was marked by declines. The price depreciated by more than 300 pips, overcoming a series of significant levels. Supply stopped for a long time only around 0.7040. If this level is overcome, the psychological barrier of 0.7000 will be endangered.
In the case of descending below 0.70, the nearest support is just over 150 pips lower, around 0.6840. There is a low from January 2016. If there is an upward rebound, the closest target for demand will be resistance to 0.7140, which was defeated and tested on 19-20 December.
