AUD/USD Is Resuming Its Downward Trend

AUD/USD tested the trend line of the pennant it broke out below with mathematical precision and resumed its downward trend.

The pair is within a zone of support at 0.7590 and I think it is very possible for it to form some correction to the upside, but in my opinion it will be rather shallow.

The main trend is bearish and the next support is at 0.7400, followed by 0.7200.

Even if we see a rally from those levels that will be corrective and I we may see a larger move north only if the monthly bar for June closes as another pin bar.

The strong support is at 0.7200 – 0.7150. The limit of the figure, however, is much larger and if the pair does reach it I think we can expect a long-term development to 0.6600.

In my opinion, when it comes to this pair it’s a good idea to open short positions at every corrective move north.