AUD/USD price actions signal potential down reversal after another failure to stabilize upwards of major dynamic support. USDX's rebound stimulates the dollar which appreciates versus the major currencies.
The price is trading in a range on the H4 chart, a downside breakout will suggest selling. At the time of writing, AUD/USD is trading at 0.7164, a drop below 0.7135 former low will activate a massive drop.
AUD/USD stabilizes below the lower median line (LML) meaning that a correction phase is favored. The false breakout above the Pivot Point (0.7189) level indicates strong sellers. The rate retested the broken lower median line (LML) and now it moves down violent.
A valid breakdown below the median line (ml) of the minor descending pitchfork and a new lower low, drop below 0.7135 brings more sellers into the game, suggests selling with a first downside target at the lower median line (lml).
- AUD/USD Trading Tips
Sell AUD/USD if the price drops and closes below 0.7135, the S2 (0.7050) and the lower median line (lml) represent immediate targets.
AUD/USD is bearish after the recent developments, the scenario could be invalidated by another higher high, bounce above 0.7215 level.
