The Aussie dollar faced a strong resistance near the 0.7200 area and recently traded lower against the US Dollar. The AUD/USD pair broke the 0.7185 and 0.7160 support levels to enter a negative zone.
More importantly, there was a close below the 0.7160 level and the 50 hourly simple moving average. The pair traded as low as 0.7136 on FXOpen UK and it is currently correcting higher.
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On the upside, there is a major resistance formed near 0.7160 and the 50% Fib retracement level of the recent decline from the 0.7188 high to 0.7136 low. Besides, there is a key bearish trend line in place with resistance near 0.7165 on the hourly chart.
Therefore, if the pair corrects higher, it is likely to face a strong resistance near the 0.7160 and 0.7165 levels. On the downside, a break below 0.7140 and 0.7130 may push the pair towards 0.7100.
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