The AUD/USD pair faced resistance at the level of 0.7210, while minor resistance is seen at 0.7165. Support is found at the levels of 0.7108 and 0.7085.
Price is testing major resistance at the level of 0.7165 (78% of Fibonacci retracement) and a strong bounce could occur at this level to push price down to at least 0.7108 support.
Pivot point has already set at the level of 0.7108. Equally important, the AUD/USD pair is still moving around the key level at 0.7108, which represents a daily pivot in the H1 time frame at the moment.
Yesterday, the AUD/USD pair continued moving downwards from the level of 0.7200. The pair dropped to the bottom around the area of 0.7132 and 0.7108.
RSI (14) is seeing major resistance below 60% where a corresponding reaction could occur.
In consequence, the AUD/USD pair broke support, which turned into strong resistance at the level of 0.7165. The level of 0.7165 is expected to act as the major resistance today.
We expect the AUD/USD pair to continue moving in the bearish trend towards the target level of 0.7108.
On the downtrend : If the pair fails to pass through the level of 0.7165, the market will indicate a bearish opportunity below the level of 0.7165. So, the market will decline further to 0.7108 and 0.7055 to return to the daily support. Moreover, a breakout of that target will move the pair further downwards to 0.7007 (double bottom).
On the other hand, if a breakout happens at the support level of 0.7210, then this scenario may be invalidated.
Forecast :
According to the previous events the price is expected to remain between 0.7165 and 0.7055 levels.
The descending movement is likely to begin from the level 0.7165 for that sell-deals are recommended below 0.7165 with the first target seen at 0.7085. The movement is likely to resume to the point 0.7055 and further to the point 0.7007.
- Expected range (daily) : 0.7165 - 0.7055
- Expected direction (trend) : Downside.
Correlation
The correlation degree highlights the resemblance of the movements between two parities. It means that the pairs trade at the same trend or the exact opposite.
- - If the correlation is high (above 80) and positive, the currencies will move in the same way.
- - If the correlation is high (above 80) and negative, the currencies will move in the opposite way.
- - If the correlation is low (below 60), the currencies will not move in the same way.
