AUD/USD forecast: Aussie eyeing upside break

After forming a top near the 0.7390 level, the Aussie Dollar declined sharply against the US Dollar. The AUD/USD pair declined and broke the 0.7300 and 0.7280 support levels.

The pair even traded below the 0.7220 level and the 50 hourly simple moving average. It even spiked below the 0.7200 handle and formed a low near the 0.7190 level on FXOpen. Later, the pair started a decent upward correction and traded above the 0.7200 level.

AUDUSD-Chart-Dec7-FXOpen

There was also a break above a key connecting bearish trend line with resistance at 0.7218 on the hourly chart. The pair is currently trading near the 0.7235 resistance and the 23.6% Fib retracement level of the recent decline from the 0.7393 high to 0.7191 low.

Above 0.7240, the pair is likely to face sellers near the 0.7250 level and the 50 hourly simple moving average. The main resistance for buyers is near the 0.7265 level and the 50% Fib retracement level of the recent decline from the 0.7393 high to 0.7191 low.

On the downside, an initial support is near the 0.7220 level followed by 0.7200. If there are more losses, the pair is likely to revisit the 0.7180 level.

The overall price action is positive and it seems like AUD/USD may continue to correct higher towards 0.7250 and 0.7265 in the coming sessions.

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