• The AUD/USD inched higher in the European session despite disappointing Chinese inflation figures,but found renewed bearish momentum after failing to break resistance level at 0.7373.
     
  • Currently the currency pair is trading around 0.7351 levels, it is set to decline further towards 0.7300 and later towards 0.7250 levels in the short term.
     
  • Short pullback around 0.7360 should be taken as selling opportunities, as Australian dollar is weaker against the US dollar in intraday trading.
     
  • Strong support can be seen at 0.7289, a break below this level will expose the pair towards next support level located at 0.7200.
     
  • Major resistance can be seen at 0.7373, a break above this level will open the gates towards 0.7441 levels.

    Resistance Levels

    R1: 0.7373 (50% Retracement Level)

    R2: 0.7441 (61.8% Retracement Level)

    R3: 0.7514 (May5th high)

    Support Levels

    S1: 0.7340 (38.2 % Retracement Level)

    S2: 0.7289 (23.6 % Retracement Level)

    S3: 0.7200 (Psychological levels)

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