AUD/USD Price Analysis: The pair moves into a strong support area

AUD/USD daily chart

The Australian dollar has been the worst hit during the recent bout of dollar strength. The market is heading to a pretty formidably zone at the 0.70 area. Adding to the strength of the psychological area is the 23.6% Fibonacci retracement and black support like which was a strong resistance back on 31/12/2020. 

If this level fails there is another level to watch at the red horizontal line near 0.6836. This zone was important in early June as it acted as the main consolidation low before the really continued in mid-July. 

The indicators are understandably in a very bearish position. The MACD histogram is red and the signal lines are just about to cross over to the downside. The Relative Strength Index is showing a bullish sign even though it is in a bearish position. This is called a bullish failure swing, it is when the market is making higher lows but the indicator makes a lower low (often moves into oversold).

There could be a small move back up in the near term but longer term this does seem like a decent reversal to the downside. 

Additional levels