AUD/USD Technical Strategy: BEARISH
- Australian Dollar retreats from chart resistance above the 0.72 mark
- Sellers eyeing range floor near 0.7142 to confirm larger downswing
- Long-term downtrend resumption hinges on what happens near 0.70
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The Australian Dollar has pulled back from minor resistance at 0.7247 to retest support in the 0.7142-70 area. A break back below this barrier confirmed on a daily closing basis opens the door for a decline to retest of the 0.7021-41 region once again.
Zooming in to the four-hour chart, preliminary steps toward bearish reversal appear to have been made. A break below trend line support guiding the latest leg of the move higher form early January has been followed by a choppy but nevertheless unmistakable decline.
If this finds follow-through and support is breached in earnest, sellers may attempt tactical shorts into the broader range support above 0.70. It is this threshold’s breach that is needed to convincingly suppose the long-term, structural decline has resumed. A close above 0.7247 may naturalize immediate selling pressure.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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