AUD/USD is in horizontal trend for last 12 months between green support near 0.72 and red resistance near 0.775. On March 21 price touched the resistance and is in downtrend since then. Considering sharp bearish reversal near the resistance, there is good chance of moving south even further, towards green line of support.
On it’s way down, the price has met blue line of midterm support. The line consists of five bottoms, including three intraday bottoms in last few days.
On the hourly chart the blue line goes through the bottoms with great precision. In the case of crossing below it, strong bearish signal will occur and one of possible ways to react to it would be to buy a put.
