AUD/USD Temporary Rebound?
The AUD/USD pair resumed its drop as expected after dropping below 0.7174 historical support level. I've told you in my previous analyses that the currency pair could approach and reach fresh new lows if it drops below 0.7174.
As long as it stays under the downtrend line, AUD/USD could resume its downside movement. Still, in the short term, we cannot exclude a temporary rebound. The pair could come abck to test and retest the 0.7174 and the downtrend line before dropping deeper.
AUD/USD Trading Conclusion!
Its failure to reach and retest the downtrend line signaled strong sellers and potential further drop. A temporary rebound, growth, could only help the sellers to catch a new downside movement. After its massive drop, we cannot exclude a minor increase. You should keep in mind that, AUD/USD could drop deeper anytime as long as it stays under the downtrend line.
Only jumping and staying above the downtrend line could signal that the downside movement could be over.
