AUDUSD Crumbles Beneath the 0.7000 Level as Selling Depletes on the Dollar

AUDUSD Price Analysis – January 2

The AUDUSD FX pair closed the last trading days of 2019 in a positive zone while arriving at its highest level since late July on the level at 0.7031 on December 31. As traders returned from the New Year holiday, the pair reversed course and fell beneath the level at 0.7000. As of this writing, the pair fell 0.35% on the day at 0.6992.

Key Levels
Resistance Levels: 0.7205, 0.7085, 0.7031
Support levels: 0.6938, 0.0.6754, 0.6670

AUDUSD Long term Trend: Bullish

In the larger pattern, while the 0.7085 resistance level remains unchanged, there is no clear confirmation of the trend reversal yet. This means that the downtrend from the level at 0.7205 (high) is still expected to continue to the level at 0.6670 (low).

However, a decisive breach of the 0.7085 level may confirm the long-term bottom and resume a strong rise behind the upper horizontal resistance area (now at 0.7205).

AUDUSD Short term Trend: Bullish

AUDUSD went off-course its momentum after it reached the level of 0.7031 and dropped 100% to the level from 0.6670 to 0.6929 from 0.6754 at 0.6992. The daily bias changed to neutral initially. At this point, there is a more moderate rise in favor as long as the resistance at 0.6938 level already turns into support stability.

A break of 0.7031 level might approach the major resistance level of 0.7085 level. However, a break of 0.6938 level might be the first sign of a short-term reversal. In this scenario, intraday bias may be reverted to the downside to test the next 0.6838 support level.

Instrument: AUDUSD
Order: Buy
Entry price: 0.6938
Stop: 0.6838
Target: 0.7085

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