By Yan Petters – The AUD/USD pair seems about to break the trading range. The pair was range-trading between the 0.8700 and the 0.9400 levels for several weeks now, yet recently saw a sharp drop. The pair slid about 600 pips in 2 weeks, and is now trading at the 0.8760 level. Can it drop further?
• The chart below is the AUD/USD 1-day chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD and the Relative Strength Index (RSI).
• The pair has recently failed to breach the support level placed at the price of 0.8675. The pair now seems on its way to test the support level again.
• Both the MACD and the RSI are providing bearish signals, suggesting that the pair has potential to cross the support level.
• In case that the support level will be breached, the pair is likely to drop towards the 0.8570 level. The next support level will then be at the 0.8400 price.
• The current resistant level is placed at the 0.9030 level. The next resistant levels are at 0.9110 and 0.9320.
Forex Market Analysis provided by Forex Yard.
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