• AUD/USD tested resistance near 0.6920.
• Bearish trend line has formed resistance near 0.6960.

The Australian Dollar, US Dollar started to decline from above the 0.7250 level. AUD/USD corrected higher towards 0.7050 before starting a fresh decline. 

AUD/USD 4-Hour Chart (Trend: BEARISH)

On the 4-hour chart, the AUD/USD pair broke below the 0.7000 level, and continues to trade below both the 100-MA (red) and 200-MA (blue). The quote even broke below the 0.6920 support level, trading as low as 0.6850 before correcting up towards resistance at 0.6960. The quote has since dropped lower and is currently trading near to the 0.6880 level.

For the pair to turn bullish, the quote will first need to test resistance near 0.6900 and the 23.6% Fibonacci retracement level of the downward move from the swing high of 0.7069 to the swing low of 0.6853. Above this there is further resistance near 0.6960, the 100-MA (red), and the 50% Fibonacci retracement level (of the 0.7069 high to the 0.6853 low). This is also close to a key bearish trend line forming resistance near 0.6950. Further gains could see the quote test resistance near 0.7000 and the 200-MA (blue).

In contrast, if the pair continues bearish, the quote will first need to test support near the 0.6850 level. Below this there is further support near the 0.6800 level. Further losses could see the quote drop down as far as 0.6800, a level last seen in June 2020.