Bears Taking Control from 0.8007 on AUD/USD

The Australian versus the US dollar currency pair seems to be under firm bearish pressure. From where can the bulls can fight back?

Long-term perspective
After the false piercing of the 0.7010 level, as highlighted by the 0.6991 low, the price started an ascending movement, thus ending the consolidative phase that began from 0.7413. In the first phase, it climbed until the 0.7320 area in a more vigorous manner. Afterward, the rise was accommodated with short pullbacks, yielding an appreciation that printed the 0.7820 high.
From 0.7820, another consolidation commenced. It ended — similarly to the previous one — after the false piercing of the support — which, this time, was 0.7587 — and following the notation of the 0.7563 low. The rally was also very alike in that it consists of a sharp movement that, before continuing the second leg, allowed for a short throwback from the 0.7850 high.
But this is where the relation stops, because, on the contrary to the first time — when the rest of the appreciation also allowed short corrections so that the entire growth marks the traces of a sustainable one — this second time, the appreciation continued with even more volatility. This is how the movement turned to be an exhaustive one, allowing the bears to put pressure after the bulls — with their last strength — pushed the price above 0.7914.
Still, if the bulls can recapture 0.7744, they can make a new attempt to check 0.7914. On the flip side, the bears could further extend the decline, targeting 0.7587.

Short-term perspective
From the 0.7583 low, the price managed to climb above the 0.7883 major level. Nevertheless, the intermediary level of 0.8007 opposed any continuation of the rise, spawning the drop that went thru 3 possible supportive areas — 0.7883, 0.7802, and 0.7742.
If the bulls validate 0.7742 as support, then they can hope for 0.7802. Once they deal with that, they can target 0.7883. However, if the bears are the ones to take over 0.7742, then the price may ebb until 0.7667 which, if it cedes, opens the door to 0.7580.

Levels to keep an eye on:

D1: 0.7744 0.7914 0.7587
H4: 0.7742 0.7802 0.7883 0.7667 0.7580

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Original from: www.earnforex.com