AUD/USD: a turning point
Long-term
The AUD/USD is trading below the tactical resistance of 0.7000. This level is not only a psychological level but also is the highest point since the very beginning of the year. Since March, the AUD/USD has been showing a strong bullish behavior due to the recovery in Australia underway and the current loss of safe-haven appetite among investors dropping the USD. The latest episode was more aggressive in the upward direction than anything we saw recently. So is the resistance of 0.7000 going to be broken?
Short-term
From a closer perspective, a bearish reversal is technically possible as bulls have definitely lost their momentum. If the support of 0.6960 is crossed downwards, and the price comes to 0.6870, then we are likely to see a further decline down to the very bottom of the general upward trend. Otherwise, breaking 0.7000 would mean some serious confidence of investors about the outlook in general and the AUD in particular.
