The AUD/USD pair has faced strong resistance at the level of 0.7048 because support became resistance. So, the strong resistance has been already faced at the level of 0.7048 and the pair is likely to try to approach it in order to test it again.
The level of 0.7048 represents a weekly pivot point for that it is acting as minor support this week. Furthermore, the AUD/USD pair is continuing to trade in a bearish trend from the new resistance level of 0.7048.
Currently, the price is in a bearish channel. According to the previous events, we expect the AUD/USD pair to move between 0.7048 and 0.6912.
Also, it should be noticed that the double top is set at 0.7048. Additionally, the RSI is still signaling that the trend is downward as it remains strong below the moving average (100).
This suggests the pair will probably go down in coming hours. Accordingly, the market is likely to show signs of a bearish trend.
Today, the first resistance level is seen at 0.7048 followed by 0.7089, while daily support 1 is found at 0.6912.
Also, the level of 0.7048 represents a weekly pivot point for that it is acting as major resistance/support this week.
Amid the previous events, the pair is still in a downtrend, because the AUD/USD pair is trading in a bearish trend from the new resistance line of 0.7048 towards the first support level at 0.6912 in order to test it.
If the pair succeeds to pass through the level of 0.6912, the market will indicate a bearish opportunity below the level of 0.6912, the market will decline further to 0.6847.
However, the price spot of 0.7048 and 0.7089 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 0.7089 is not breached.