Technical analysis of AUDUSD

AUDUSD has bounced towards 0.72 from 0.70. Price is back testing broken support that is now resistance. AUDUSD is at a critical junction. A rejection here and a move below short-term support at 0.71 could lead to another leg lower towards 0.69.

Green rectangle - resistance

Red line - trend line resistance

If price breaks above the green trend line, we next expect price to challenge the red downward sloping resistance trend line. At 0.7165 where we are currently, I prefer to be short with stop at 0.7215 and target 0.71-0.69. If price breaks above 0.7215 I expect price to reach 0.7260 at least. My preferred scenario is to see a rejection and reversal at current levels.