The AUDUSD pair remains prone to sharp downwards price movement. Get our Forex signal:
I wrote on Monday last week last Tuesday that we had a pivotal resistance level at 0.7223 still in play. I thought that a bearish breakdown below approximately 0.7190 would complete a bearish head and shoulders candlestick pattern and suggest the price would continue to fall.
This was a good call as the resistance at 0.7223 held firmly when it was reached, giving a profitable short trade opportunity.risky assets making strong selloffs before rebounding late yesterday. This risk-off then recovery movement was naturally replicated in the Australian dollar , which is a key risk barometer currency. We saw the price plunge then bounce strongly at the support level at 0.7102 confluent with the round number. There are clear, obvious resistance levels above, with the nearest being 0.7170, which held the price just a few hours ago.
The price is now trading in the middle of this range and waiting for direction. Risky assets are looking weak and prone to further fallsprospect of a military conflict between Russia and Ukraine . These fears are likely to determine whether the price eventually breaks below 0.7100 and continues to fall, or whether we start to see a gradual recovery and rise.trade from another bullish bounce at 0.7100There is nothing of high importance scheduled today concerning either the AUD or the USD.
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