AUD/USD: Bulls/bears battle for control ahead of 0.7160

By FXStreet FXStreet (Bali) – AUD/USD sellers have stepped once again, trying to move the pair off the top edge, currently at 0.7143, with the stepping structure formation seen since the pair bottomed sub 0.71 late in the last US session now at risk for a potential resumption of the bear momentum.

Key bearish breakout on Thursday

After multiple attempts, the Aussie bears finally managed to break through a key level of paycheck liquidity sub 0.7160, with acceptance below a sign that this is now a market well in control of bearish forces as long as 0.7180/72 is now clearly recovered. Broad-based USD strength has damaged the technicals stance in the Aussie following weeks of constructing price action, in which a 4 cents rally off 0.70 since mid-November was seen.

AUD/USD key levels to watch

On the topside, as long as sellers can keep the price below 0.7160 first and then 0.7180 (high volume area) ahead of 0.72, controls should still be exhibited. Note, however, that any acceptance above 0.7160 could be an initial early warning that bulls are gaining ground. On the downside, the focus is now on 0.7100 round numbers, with 0.7120 an area of high volume seen yesterday; below 0.71, 0.7160/70 – …read more

Source:: FX Street