On the Aussie chart, we can see that the last bearish candle has reflected from an important resistance after re-test and is definitely heading south. However,we must ask ourselves whether 0.7310 can still be treated as a reliable barrier level. Over the past two weeks, it has been broken four times. On the other hand, it worked well three times.

The level of 0.7310 in the past has been operating several times, at the beginning of July it meant a dip, which lasted with short breaks from the beginning of January. The price turned back many times after reaching its vicinity, until August 10, when there was a sudden breakthrough. From then on its credibility diminished.

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You can risk entering a short with the target at 0.7210, where the next low from August 15 is located. This position will bring a profit / risk ratio of around 3.5: 1, if Stop Loss is placed just above the resistance. In my opinion, however, it is better to leave this signal, because I do not trust the strength of bears in this area.

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