AUDUSD: Aussie Fails at Resistance, Slides on Tuesday

The Australian Dollar slipped on Tuesday and the AUDUSD pair was 0.20 per cent weaker during the London session. The pair traded at around 0.7110.

The important resistance was at previous lows at 0.7150 and the pair remained at this level on Monday and then quickly reversed. This zone is still the major resistance and bears should defend it, because if the Aussie jumps beyond this level, we could see a bigger relief rally toward the long-term bearish trend line, which is currently at around 0.7220. From the intraday perspective, another selling zone might be near 0.7130, where previous highs are located.

A more negative fact for bulls to consider, is that the pair has dropped below the short-term bullish trend line and that similar development has occurred on the RSI indicator too, suggesting further selling pressure may arise over the next few hours.

The support could be located at the 0.71/0.7090 region and if broken, further deterioration toward the current cycle lows at 0.7050 might occur. As long as the pair trades below 0.7130, the short-term outlook seems bearish.

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