Amid the strengthening of the U.S. dollar, the AUD/USD pair is correcting downward today, declining after rising at the beginning of the week.
At the beginning of today's trading day, the price broke through the important short-term support level 0.6962 (200 EMA on the 1-hour chart). And with the start of the European trading session, the AUD/USD decline resumed, and the pair headed towards the key support level 0.6863 (200 EMA on the daily chart), separating medium-term bull market from bear market.
Today, the pair found support at 0.6900 (50 EMA on the weekly and daily charts and the bottom line of the upward channel on the daily chart). But below the key long-term resistance levels 0.7075 (144 EMA on the weekly chart), 0.7140 (200 EMA on the weekly chart), AUD/USD remains in the long-term bear market zone. And the breakdown of the important support level 0.6830 (144 EMA on the daily chart) will signal that AUD/USD will return to the long-term bearish trend.
In an alternative scenario, the first signal for the resumption of long positions may be a breakdown of the resistance levels 0.6937 (200 EMA on the 4-hour chart), 0.6962. But the upside targets are still limited by the resistance levels 0.7075, 0.7100, 0.7140. Only their confirmed breakout will confirm the return of AUD/USD to the long-term bull market zone.
Support levels: 0.6900, 0.6863, 0.6830, 0.6720, 0.6700, 0.6665, 0.6635
Resistance levels: 0.6937, 0.6962, 0.7000, 0.7040, 0.7075, 0.7100, 0.7140, 0.71 57
Trading scenarios
Sell Stop 0.6880. Stop-Loss 0.6950. Take-Profit 0.6863, 0.6830, 0.6720, 0.6700, 0.6665, 0.6635
Buy Stop 0.6950. Stop-Loss 0.6880. Take-Profit 0.6962, 0.7000, 0.7040, 0.7075, 0.7100, 0.7140, 0.7157
