The Australian dollar versus the US dollar currency pair consolidates just above the major support represented by 0.6858. So, what will happen here decides the fate of the pair for quite some while from now on.
Long-term perspective
The price is contained in the descending channel that started on January 2018, and the last depreciation brought the price at 0.6858. The importance of this level is backed by two factors. The first one is that the level served as a retracement point for the drop that took place at the start of 2019. The second one is that the level, as one can see by checking the monthly chart, is graciously respected by the price oscillations.
Still, the trend is descending and while it remains valid, so do the bearish expectancies. Even if the price begins a rally, as long as it does not confirm 0.7201 as support, it would only represent an opportunity for the bears to get back in the market at a better price. Another possible scenario is to see 0.6858 breached and confirmed as resistance, in which case the first target will be 0.6800 followed by 0.6750.
Shot-term perspective
The price is in a descending move and also in what looks to be a bearish triangle. After the piercing and confirmation as resistance of 0.6865, the next target would be 0.6800.
On the other hand, if the bulls manage to confirm 0.6935 as support, then the way to 0.7003 is open.
Levels to keep an eye on:
D1: 0.6858 0.7055 0.7201 0.7308
H4: 0.6855 0.6935 0.7003
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