AUD/USD is under pressure. The pair broke below the key support at 0.7430 yesterday turning the intraday outlook bearish. A bearish pattern of lower highs has been produced. While the pair is currently off yesterday's low of 0.7315, the 20-period moving average stays below the 50-period one, and the intraday relative strength index is under 50, showing a lack of upward momentum for the pair. A break below the immediate support at 0.7300 would trigger further decline toward 0.7260 (last seen on June 3).
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.73. A break below this target will move the pair further downwards to 0.7260. The pivot point stands at 0.7430. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.7465 and the second one, at 0.7510.
Resistance levels: 0.7465, 0.7510, 0.7580
Support levels: 0.73, 0.7260, 0.72
