Short-term bearish bias
Key levels: downside: 0.7090 / upside: 0.7120
The aussie remains under pressure after a series of lower lows. The pair could drift lower and 0.7010 would be the next target in sight. There is no sign of reversal yet and 0.7200 will be a major resistance for any rally.
The recent whipsaws on the 4H chart provide range-trading opportunities with clearly defined boundaries. The pair has met stiff selling pressures near the 0.7130 resistance and 0.7060 would be shorts’ target. On the hourly chart, pessimism prevails after the price dipped below the 0.7110 support level. This might have opened up the way to the downside. Should the 20-hour MA cross below the 30 one, this would be seen as a confirmation that there is more room on the downside.
Should buyers fail to show up, a sell-off could push the price down to 0.7090. The upside risk would be a rally above 0.7120.