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Will AUD/USD Continue its Decline?

November 24, 2021

  • AUD/USD started to decline after testing resistance near 0.7550.
  • Bearish trend line has formed resistance near 0.7275. 

The Aussie Dollar, US Dollar pair started a major decline from above the 0.7500 resistance level. AUD/USD broke support at 0.7350 and continued bearish.

 

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

On the 4-hour chart, the pair continued to decline below the 0.7300 level. The quote  even settled below the 0.7300 level, and both the 100-MA (red) and 200-MA (blue).

If the pair continues bearish, the first support level it will test is near the 0.7200 level. A break below 0.7220 may open the doors for further losses. The next major support level is at 0.7120. A break below here could see momentum take the quote down towards 0.7000, a level last seen in November 2020.

For the pair to turn bullish, first the quote will need to test resistance near 0.7270. There is also a major bearish trend line forming resistance near 0.7275. Next the quote would need to test resistance at 0.7290, which is also close to the 50% Fibonacci retracement level of the downward move from the swing high of 0.7370 to the swing low of 0.7207. A break here could see momentum build, taking the quote back up towards 0.7430.

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