The AUD/USD price paused the upside momentum around the 200-day SMA near 0.6900. The price rejection turned into a bearish engulfing pattern, suggesting a strong downtrend ahead. However, the price saw mild support by the 100-day SMA.
We may see an upside correction on the lower timeframes before the resumption of a downtrend. The 0.6685 level is an important support that coincided with the 100-day SMA. However, the bias remains bearish as long as the price remains below the 200-day SMA.
Key levels to watch
Support 1: 0.6585
Support 2: 0.6515
Support 3: 0.6400
Resistance 1: 0.6780
Resistance 2: 0.6900
Resistance 3: 0.7015
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