AUD/USD Might Be At a Turning Point

AUD/USD registered a good move to the upside in the last couple of weeks going from a low 0.7159 to a high of 0.7520. The move comes after the pair has been declining in price due to the 14 year high US dollar. Even that was not enough to keep the Australian dollar bulls from taking control over the pair. The australian currency rose significantly on good economic data thus putting an end to the dominance of the Greenback.

The rise of the AUD, however, might have come to an end as the pair has reached a resistance level created by a double top that has the potential to turn the trend. AUD/USD is already lower after meeting resistance at 0.7515 and is now trading at 0.7485. Another factor that can influence the price is the 200SMA that lays at the same level of resistance.

If the pair closes the last day of the week with an inverted hammer candle it would be a good sign that we might witness further depreciation next week.

Chat: AUD/USD D1