As of this writing, AUD/USD is trading near 0.7186, just above important support levels 0.7156 (200 EMA on the 4-hour chart), 0.7180 (200 EMA on the 1-hour chart, 50 EMA on the daily chart).
From a technical point of view, a breakdown of these support levels will trigger a further decline in AUD/USD inside the descending channels on the daily and weekly charts and to the levels of 0.6835, 0.6800 with intermediate targets at the support levels of 0.7085, 0.7037 (38.2% Fibonacci retracement to the decline wave pairs from 0.9500 in July 2014 to 2020 lows near 0.5510), 0.7000, 0.6970, 0.6900.
The continued positive upward trend in 10-year US bond yields makes the dollar an attractive asset for investment, given the prospects for further tightening of the Fed's monetary policy. The dollar is also actively used as a defensive asset, winning over traditional defensive assets such as gold, franc, and yen.
In an alternative scenario, AUD/USD will again try to break through the key resistance levels 0.7265 (200 EMA on the daily chart), 0.7240 (144 EMA on the daily chart), and 0.7305 (200 EMA on the weekly chart, 50 EMA on the monthly chart). A breakout of the resistance levels 0.7600 (200 EMA on the monthly chart), and 0.7640 (144 EMA on the monthly chart) will bring AUD/USD into the zone of a long-term bull market.
Support levels: 0.7180, 0.7156, 0.7085, 0.7037, 0.7000, 0.6970, 0.6835, 0.6800, 0.6450
Resistance levels: 0.7200, 0.7240, 0.7265, 0.7305, 0.7400, 0.7440, 0.7510, 0.7555, 0.7600, 0.7640
Trading Tips
Sell Stop 0.7150. Stop-Loss 0.7220. Take-Profit 0.7100, 0.7085, 0.7037, 0.7000, 0.6970, 0.6835, 0.6800, 0.6450
Buy Stop 0.7220. Stop-Loss 0.7150. Take-Profit 0.7240, 0.7265, 0.7305, 0.7400, 0.7440, 0.7510, 0.7555, 0.7600, 0.7640
