FxWirePro: AUD/USD managed to take support at 0.7066 but rejecting resistance at 0.7144

The pair is managed to sustain previous crucial supports at 0.7066 region which has found itself the strength at the same levels in recent past as well (see circled areas) but for now it is struggling to hold onto the resistance at 0.7144 levels and same is the case in the historical evidences.

As shown on the daily charts, it has not been able to break levels of 0.7145 quite a lot times in the recent past, and same does the support levels at 0.7066 on southwards, you can observe how the price behavior of this pair on either side after breaching this level in the recent historical evidences (see yellow circled areas).

It's been a clear downtrend both on short term as well as on long term perspectives as the pair has been declining consistently way back in 2011 from 1.10 levels (see monthly charts).

More importantly, the bearish pattern like gravestone doji candle even at 0.7210 levels daily charts is popping up that signifies weakness in previous rallies, looks like bears are completely under control.

As the prices continued to taking over from Friday's rallies RSI oscillator has begun converging these price recoveries which is near 45 levels, however we don't think this would sustain as there were no positive fundmental news to back this convergence. This would mean that selling pressures are piling up.

Subsequently, although there is an attempt of %K crossover below 20's on stochastic curve that shows little buying interests, there is no clear substantiation from other indicators, we've seen today's lows have pushed from .07112 to 0.7149 but struggling to breach above stated resistance.

The prevailing prices have still slipped below 10DMA which is again one more bearish indication. However, closing basis should be closely monitored.

If it does not manage to breach 0.7144 level then we could still foresee the existing bearish trend to prevail.