AUD/USD challenging buyers

AUD/USD found resistance right above the 0.73 psychological level and now it has turned back down. The price stands above the support zone, so it remains to see how it will react around the demand zone.

The Aussie was helped by the Flash Manufacturing PMI and by the Flash Services data in the past week. Unfortunately, the pair was dragged lower by the DXY's rebound. The Dollar Index stands right below a dynamic resistance. It could take out this obstacle if the US economic figures will come in better than expected during the week.

DXY's further growth may push the pair down towards fresh new lows. Today, you should keep an eye on the economic calendar as the Durable Goods Orders and the Core Durable Goods Orders may bring life to this pair.

You should be careful also at the FOMC Brainard, Williams, and Evans speeches, anything could happen if these will be more hawkish or dovish than expected.

AUD/USD Under Massive Pressure!

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AUD/USD has found resistance at the descending pitchfork's 150% Fibonacci line before dropping towards the confleunce area formed at the intersection between the 61.8% retracement level with the upper median line (uml).

Staying above these downside obstacles may signal potential growth in the short term. The most recent rebound was natural after failing to close below the weekly S1 (0.7224) level. Technically, a new lower low, a bearish closure under the 0.7220 could activate further drop.

AUD/USD Prediction!

Technically, I believe that only a new higher high, a valid breakout through the 0.7316 level and above the first warning line (wl1) could really announce a strong swing higher.

Making a new lower low, bearish closure below 0.7220 could be seen as a selling opportunity with a major downside target at the 0.71 psuychological level.

The material has been provided by InstaForex Company - www.instaforex.com

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