AUD/USD slipped lower initially in the early European session. However, the pair has managed to rebound towards 0.7224 levels after finding support at 0.7188. Currently the pair is making an attempt to test resistance level at 0.7225.
- Further upside is expected to be limited around 0.7250 levels as the resistance level at 0.7263 is set to act as strong barrier to bulls and initiate a bearish momentum towards 0.7180 and later towards 0.7100 levels. Therefore, it's good to sell this pair around 0.7250 levels.
- To the upside, the strong resistance can be seen at 0.7263, a break above this level would take the pair towards next resistance level at 0.7300.
- To the downside immediate support can be seen at 0.7188, a break below this level will open the door towards next level at 0.7141.
Recommendation: Go short below 0.7250, targets 0.7190, 0.7150, SL 0.7080
Resistance Levels
R1: 0.7225 (50% Retracement level)
R2: 0.7244 (Dec 8th high)
R3: 0.7263 (61.8% Retracement level)
Support Levels
S1: 0.7188 (38.2% Retracement level)
S2: 0.7170 (Nov 30th lows)
S3: 0.7141 (23.6% Retracement level)
