The AUSUSD in the Asian session based against a swing area (see green numbered circle 8) and moved higher into another swing area (see red numbered circle 9). That high upper swing area stalled the rally and the price moved sharply to the downside. After a corrective move back to the green swing area (green circle nine), the pair has chopped lower since that test.
On the downside, a downward sloping trendline on the hourly chart has been able to hold support (blue circles 3, 4 and 5). Getting below that trendline would be a more bearish development in the new trading day. The current price trading at 0.7180, and the lower trendline cuts across at 0.7169 and moving lower.
On the topside, it would take a move above the 0.7199 to 0.7204 area to hurt the bearish control. Move above that area and the 200 hour moving average at 0.72123 would be targeted. Both moves would give the buyers more confidence and negate the bearishness seen over the last few days.
