AUD/USD has made a short squeeze to trade around 0.7148 levels after falling almost by 100pips yesterday. To the higher side the pair finds strong resistance zone around around 0.7200 levels, and is trading below pivot point located at 0.7210 suggesting more downwards for the pair in the short term, therefore it's good to sell this pair on rallies.
- To the upside, the immediate resistance can be seen at 0.7200, a break above this level would take it to next resistance level at 0.7242 (Oct 22nd high).
- To the downside, immediate support level can be seen at 0.7145, a break below will expose the pair further downwards towards 0.7100 levels.
Recommendation: Go short below 0.7200, targets 0.7140, 0.7070, SL 0.7300
Resistance Levels
R1: 0.7174 (50% Retracement level)
R2: 0.7200 (61.8% Retracement level)
R3: 0.7242 (Oct 22nd high)
Support Levels
S1: 0.7145 (38.2% Retracement level)
S2: 0.7112 (23.6% Retracement level)
S3: 0.7066 (Oct 6th lows)
