I watched AUDUSD last Monday, where I paid attention to respecting key support around 0.7043. Of course, the pair was in a downward trend at that time, but there was a chance to recover after rebounding from the mentioned support.
As you can see in the daily chart below, the reflection actually occurred. Yesterday, bulls appeared on the pair and managed to not only break the horizontal resistance close to 0.7148 but also the key line of the downward trend running from this year’s highs.
Such a situation on the chart indicates the breaking of the downward trend (although this is not yet a reversal). Today, quotations are strengthening further and another horizontal resistance is visible near 0.7309.
In case of a pull back, traders may observe the reaction of quotations in the vicinity of previous resistance at 0.7148, which previously acted as support and the broken trend line.