AUDUSD as a result of ongoing from June 30 declines broke support around 0.7625 level. Since then market is moving in consolidation, its upper limit is the broken support (now resistance) that coincides in addition with 38.2% of Fibonacci correction from the entire last downward movement.

AUDUSD H4

It is also worth noting that this level has prevented bulls from further increases. Consequently, its permanent rejection could open the way to further declines, and given the technical layout, H4 chart could produce bearish head and shoulders formation. Defeating the neckline and breaking the bottom of the current consolidation could open the way for further declines at least to around 0.7520.

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