The AUD/USD Correction May Continue With A Depreciation To 0.7500

There is almost no doubt that before the pair tests the breakout of the trend line it will head for the support at 0.7450.

On the H1 time frame we can notice an almost perfectly formed flag – the pair has reached the support and resistance trend lines twice, has broken out below it and we can hope that the next strong support on the way down would be at 0.7500 – 0.7520.

That could be the entirety of the depreciation and then there could be a test of the breakout  (marked by a thick red line) or the pair could test the local low in the zone around 0.7440 – 0.7420 and then to begin a rally toward 0.7640 – 0.7750.

Today is Friday and the trading week will conclude in mere hours, so it is important to see how the W1 bar will close. It could add more clarity regarding how the pair will develop next week.