The AUD/USD pair opened below the weekly pivot point (0.7234). It continued to move downwards from the level of 0.7234 to the bottom around 0.7202. But the pair rebounded towards the daily pivot point again. Today, the first resistance level is seen at 0.7263 followed by 0.7299, while daily support 1 is seen at 0.7167. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 0.7234. So it will be good to sell at 0.7234 with the first target of 0.7167. It will also call for a downtrend in order to continue towards 0.7135.
The strong daily support is seen at the 0.7135 level on the H1 chart. According to the previous events, we expect the AUD/USD pair to trade between 0.7234 and 0.7135 in coming hours. The price area of 0.7299 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.7299 is not broken. On the contrary, in case a reversal takes place and the AUD/USD pair breaks through the resistance level of 0.7299, then a stop loss should be placed at 0.7330.
