The Australian versus the US dollar currency pair seems to have a hard time resuming the upward movement. It is the trend approaching the end of its evolution?
After the rise that started following the validation as support of the 0.5516 firm area, the price started an ascending trend.
The first part of this unfolding was under strict bullish control, as they conquered 0.6386 fairly quickly.
Their next objective, 0.7010, required a little more effort from, but with a little help from the 0.6873 intermediary level, they succeeded in checking it as well.
However, once the bulls approached the 0.7320 zone, they began to meet some serious bearish opposition.
The first bullish unsuccessful event was the false break of 0.7320, which, after etching the 0.7413 high, validated the level as resistance, thus fueling the drop that pierced the 0.7191 support.
Nevertheless, from the next support, 0.7010, the bulls attempted a recovery, validating it as support and heading for 0.7191. And this was the second bullish failing struggle, as after coining the 0.7243 high — which is part of the false break of 0.7191 — the price dropped, washing away most of the gains and coming very close to 0.7010.
So, if 0.7010 remains support, then the bulls may have another try to retake 0.7191, and only if they score, then they can aim for 0.7320.
On the flip side, if 0.7010 cedes, then 0.6722 is the next bearish target, with the intermediary level of 0.6873 serving as a partial profit taking area.
The fall from the 0.7345 high extended until the 0.7002 support. From there, the bulls managed to capture two levels, 0.7081 and 0.7170, respectively.
But 0.7236 limited the bullish advancement to the 0.7243 high. What followed was a depreciation that went under 0.7170 and also under the previous low at 0.7095, halting at the 0.7081 intermediary level.
If 0.7081 fails the bulls, then 0.7002 is the first bearish objective, followed by 0.6949. However, if the bulls do pull a comeback, then 0.7170 could be their first target.
Levels to keep an eye on:
D1: 0.7010 0.7320 0.6873 0.6722
H4: 0.7081 0.7002 0.6949 0.7170
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