The AUD/USD pair is trading below the 50 and 100 Simple Moving Averages on the one-hour chart. Momentum has turned to the downside, while the Relative Strength Index is stable.
The trend of AUD/USD pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 0.7300 and 0.7167. Also, the daily resistance and support are seen at the levels of 0.7300 and 0.7167 respectively.
Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed.
The AUD/USD pair continues to move downwards from the level of 0.7341. Yesterday, the pair dropped from the level of 0.7341 (this level of 0.7341 coincides with the double top) to the bottom around 0.7264.
Today, the first resistance level is seen at 0.7341 followed by 0.7341, while daily support 1 is found at 0.7208.
Also, the level of 0.7208 represents a weekly pivot point for that it is acting as major support this week.
US weekly jobless claims are set to show an ongoing decrease, albeit at a moderate pace. Consumer Price Index statistics will likely show inflation remains under control.
Amid the previous events, the pair is still in a downtrend, because the AUD/USD pair is trading in a bearish trend from the new resistance line of 0.7300 towards the first support level at 0.7208 in order to test it.
Moreover, the price spot of 0.7300/0.7341 remains a significant resistance zone. Therefore, there is a possibility that the AUD/USD pair will move downside and the structure of a fall does not look corrective.
If the pair succeeds to pass through the level of 0.7208, the market will indicate a bearish opportunity below the level of 0.7208.
Additionally, if the AUD/USD pair is able to break out the first support at 0.7208, the market will decline further to 0.7167 in order to test the weekly support 2. Also, it should be noticed that support 3 is seen at the level of 0.7074.
However, the price spot of 0.7300 and 0.7341 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.7341 is not breached.
The material has been provided by InstaForex Company – www.instaforex.com
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