The Australian dollar was trading 0.20% weaker during the London session on Monday and was seen hovering around 0.7270 as the AUDUSD pair has failed to get above the key bearish trend line yet again.
Bulls have pushed the Aussie to the key selling line at 0.730, where the major bearish trend line seems to be located. This trend line has limited the upside move of the Australian dollar for many months and it appears this time it wont be different as the Aussie slid after touching this resistance.
Bullish investors will now defend the previous selling zone in the 0.7240 - 0.7215 zone and if this range is broken, the bearish trend could be renewed fast, targeting the lower support trend line, which is currently around 0.71.
On the upside, should bulls be stronger in the near future, the bearish trend line is now about 20 pips below the 0.73 mark and if its conquered, we could see a bigger bullish breakout, targeting 0.7330 in the first wave. If the AUDUSD pair settles above this resistance, the bearish trend would be cancelled, with the next level to watch around 0.74.
Overall, the direction might be decided after breaking below 0.7215 or jumping above 0.73.
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