After a month-long consolidation, AUD/USD is continuing its downtrend. Let’s take a look at the AUD/USD’s charts to see where the pair might finally stabilize.
The AUD/USD respected a 0.83, the 50-day SMA, and a falling trendline in the past month’s consolidation. As we wrap up the week, it is now just above the 0.79 handle, poised to break lower. If there is a pullback, watch out for resistance in the lows of the broken consolidation area, around 0.8050-0.81.
The monthly chart shows further room to run, with the 0.70-0.71 area as a key support. This area contains a support/resistance area, the 2006-low, 78.6% retracement and arising trendline coming up from the 2001 lows around 0.4814.
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