As the bulls tried to conquer the 76.02 level, the bears managed to turn the appreciation in their favor, causing a descent that can be considered a confirmation of the level as a resistance.
Long-term perspective
The Australian dollar versus the Japanese yen currency pair was engaged in a descent that was very well driven by the sellers. After confirming the level of 80.54 as resistance, the price fell under the just pierced resistance of 79.41, and thus the failiure to confirm the latter level as a support fueled the optimism of the sellers.
Later, the descent faced the 77.47 support. It was a significant support, so the reaction of the price with respect to this level were to establish the fate of the pair for the upcoming time. Given the strong bearish drive, the price managed to break 77.47, making any bullish attempt to render the pierce as false a failed cause.
After the confirmation of the 77.47 area as resistance on May 10, 2019, the drop continued and brought the price under 76.02. The bears, after a few days of rest which resulted in a the consolidation phase that can be seen unfolding under 76.02, made a new push that printed the 74.96 low.
If the price will not be able to pierce and confirm 76.02 as resistance, then the descent might continue, with or without delays given by the local 74.96 support. Each subsequent psychological level represents a target.
Short-term perspective
The price is in an ascending move that began at 74.96. The price closed the gap of June 10, 2019, meaning that any descent will only diminish the possibility of the upwards trend to continue.
If the double support, made possible by the trendline and the support level of 75.62, will give way, the bears would be very determined to bring the price to 75.33 and then to extend beyond 74.96.
A false break of the aforementioned double support will raise the chances for the continuation of the uptrend and the conquering of 75.99, which corresponds to the 76.00 psychological level.
Levels to keep an eye on:
D1: 76.02 74.96
H4: 75.62 75.33 74.96 75.99 76.34
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