AUD/USD recovery from 0.7000 now appears to be getting over. The pair consolidated near 0.72000 for nearly a week and is currently trading at 0.7162. The immediate support is at 0.7140 another support area is at 0.7115. The intraday resistance is at 0.7180 while the 0.7200 is acting as a stiff resistance area.

The SMA-21 is indicating resistance at 0.7193 and the SMA-50 is showing a resistance area at 0.7208. The Mid-Bollinger band is at 0.7158 while the upper and lower Bollinger bands are at 0.73914 and 0.6998 respectively.  The RSI is below the neutral zone on the intraday scale. The MACD lines have moved closer and keeping below the zero line. The price pattern on the weekly and intraday charts is bearish and favors sell entries in the pair. A decent selling entry would be at 0.7170 with a small target of 50 to 60 pips. A tight stop-loss for this trade would be at 0.7220.

Bears need a closing near 0.7120 to take the pair further lower. On the upside, 0.72000 is acting as a strong resistance area and bulls need a price action above this level to get a stronghold.

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By LCMS Traders FX Analysis Team

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