The Aussie Dollar extended its decline and it tested the 0.7100 zone against the US Dollar. The AUD/USD pair traded as low as 0.7106 and it is now attempting an upside correction.
It recovered above the 0.7130 level, but it is facing many hurdles near the 50 hourly simple moving average. There is also a key bearish trend line forming with resistance near 0.7165 on the hourly chart.
A clear break above the trend line resistance could lead the pair towards the 0.7200 resistance. The next major resistance for the bulls could be 0.7220.
If the pair fails to clear the trend line resistance, it could start a fresh decline below 0.7130. The next major support is near the 0.7100 level, below which there is a risk of a larger decline in the near term.
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