The Aussie Dollar gained pace above the 0.7100 resistance level against the US Dollar. The AUD/USD pair even broke the 0.7150 level, but it struggled to continue higher.
As a result, there was a downside correction and the pair tested the 0.7100 support zone. It is currently showing a few bearish signs and struggling to stay above a major bullish trend line at 0.7115 on the hourly chart and the 50 hourly simple moving average.
If there is a clear break and close below the trend line support, there is a risk of more losses below the 0.7100 support. The next major support is near the 0.7050 level on FXOpen.
Conversely, the pair could hold the 0.7115 and 0.7100 support levels. On the upside, there is a key bearish trend line forming with resistance near 0.7130, above which the bulls could gain strength.
