Aussie found itself in a very important level. The downward reaction is already visible. This can be a good opportunity to open a short position. Before we do that, let’s focus on the last situation on this currency pair.The AUDUSD price from mid-June for nearly two months was in a consolidation between support at 0.7310 and resistance at 0.7490. Most of the time, the price moved even in a narrower range. On August 10, the price broke out from the consolidation thru the bottom, and now we see a 0.7310 retest from below. If it works as a new resistance, it can be a great opportunity to enter shorts.

Where can the falls go? The first target for bears will certainly be around the last low, just over 0.7200. In my opinion, it is likely to reach significant support from the daily chart at 0.7170. This is where the price bounced dynamically in June and December 2017.

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