On the M15 chart, AUD/USD started moving towards lower highs and lower lows signaling for an active downtrend. On June 16, the pair broke below the support at 0.7720 that was followed by the descending channel breakout to the downside.
The Fibonacci applied to the channel breakout point shows that 38.2% level – S1 (0.7681) was also broken, that can be interpreted as a high probability that the rate will continue moving lower.
The nearest resistance is expected at the channel breakout point that is 50% level – R1 (0.7698). Consider selling AUD/USD on a pullback, near 0.77 (R1), targeting 0% area that is near 0.7628 (S3). Only a break above the key resistance R2 (0.7715) would invalidate this scenario.
Support: 0.7681, 0.7661,
Resistance: 0.7698, 0.7715
The material has been provided by InstaForex Company – www.instaforex.com