AUD/USD is currently trading near a crucial multi-week support area at 0.7129. A breach below this support area is likely to send the pair significantly lower. The 0.7120 is a strong support area while other supports are present at 0.7100 and 0.7177 area. The intraday resistance is at 0.7244 another resistance is at 0.7260.

The pair’s price pattern is now turning bearish after keeping a bullish outlook for more than 2 months. The SMA-21 is indicating a resistance area at 0.7275 while the SMA-21 is showing resistance at 0.72021. The pair has also moved below the Mid-Bollinger band. The RSI is now below the neutral zone at 44. The 0.7120 is currently a major support area and short positions are favored only if the pair breaks below this area on the 4-hourly period. The ideal target for this trade would be between 50 to 60 pips while a tight stop-loss would just above the 0.7160 resistance area.

Bears need an intraday closing below 0.7120 for taking the pair further lower towards 0.7020/0.7000. On the upside, only an intraday closing above 0.7200 would provide some space to the bulls.

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By LCMS Traders FX Analysis Team

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