AUD/USD did a fake breakout of the short-term resistance at the price of 0.7182. Seems like sellers took control from buyers.
We found bearish divergence on the Stochastic oscillator, which did set the current downward tone. There is also the down breakout of the 12h balance, which is another sign of the weakness. Support is seen at the price of 0.7142-0.7072 and the resistance at 0.7200.
Trading recommendation:
Aggressive entry: You can sell AUD/USD from 0.7170 with targets at 0.7142 and 0.7073. Protective stop can be placed above 0.7200.
Conservative entry:
You can wait for breakout of 0.7142 to confirm further downside and then put target at 0.7072 and protective stop at 0.7200.
The material has been provided by InstaForex Company - www.instaforex.com