Watchout for AUD/USD break below 0.72 for further downside

Selloff in oil and bulk commodities which extended for a third day weighed heavily on currencies of major commodity producers such as Australia.

• AUD/USD rejected at day's high by 0.7237, back to opening level at 0.7218 after topping at 0.7237
   
• Bear signs upped as pair dives below 10-DMA & pierces 21 & 100-DMAs while daily RSI and Stochs maintains bear bias
   
• Strong support seen at 0.72 (trendline),breaks below could see retracements upto 0.71 and then to 0.7080 levels
   
• Immediate resistance is seen at 0.7237 (session high Dec 9) and then at 0.7269 (10 DMA)

Recommendation: Good to sell rallies around 0.7225, SL: 0.7280, TP: 0.71

Resistance Levels:

0.7237 (session high Dec 9) 

R2: 0.7269 (10 DMA)

R3: 0.7270 (Dec 8 high)

Support Levels:

S1: 0.7201 (21-Day MA, Trendline)

S2: 0.7194 (100-Day MA)

S3: 0.7173 (55 DMA)