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.


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.

Try an account at Windsor Brokers. The free MT4 platform provided by the broker offers all  tools to design even the most complex technical analysis formations. Check out the offer.

Error, group does not exist! Check your syntax! (ID: 3)