The Australian dollar currency is attempting to recover higher against the US dollar, following last week’s drop below the 0.7700 support area. A bearish head and shoulders pattern with a 200 point downside projection will be activated if bears break under the 0.7700 level. If AUDUSD bulls move the price above the 0.7880 level, then the bearish pattern will be invalidated and a strong counter rally will likely start.
The AUDUSD pair is only bullish while trading above the 0.7700 level, key resistance is found at the 0.7800 and 0.7890 levels. The AUDUSD pair is only bearish while trading below the 0.7700 level, key support is found at the 0.7650 and 0.7550 levels.