The AUDUSD currency pair has been in an uptrend for over a year. While there are still no signs of a change in the trend in the daily interval, the dynamics of the upward movement has clearly decreased. Looking at the chart, buyers have recently hit the key support level at 0.7580. This level is marked with the lower limit of the 1: 1 structure, as well as the EMA150 and earlier price reactions.
According to the Overbalance methodology, the main trend remains upward. Nevertheless, last week the pair had a clear problem with breaking above the 0.7810 level, which remains important short term resistance. The pair bounced off this level also yesterday, therefore this zone must be overcome in order for the upward movement to continue. Should such a scenario materialize, the recent highs at 0.7970 would be the next target for the market bulls. On the other hand, if sellers regain control, it is possible that the pair will fall to the regions of the above-mentioned support at 0.7580. Break lower could lead to the formation of a broad head-to-shoulder pattern.
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AUDUSD interval D1. Source: xStation
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