AUD/USD in strong drop, 0.6917 seen as key obstacle

AUD/USD Uptrendline Violated!

The AUD/USD pair registered a strong downside movement. It was trading at 0.6917 at the time of writing and it seems determined to approach and reach new lows. Dropping below the uptrend line signaled exhausted buyers and a potential new downtrend.

0.6917 is seen as a downside obstacle. After its amazing drop, we cannot exclude a temporary rebound. In the short term, it could come back to test and retest the broken downtrend line before dropping deeper.

AUD/USD Trading Conclusion!

As long as it remains above 0.6917, the AUD/USD pair could come back higher. Dropping below 0.6917 former low which represents a downside obstacle could announce a larger drop. This scenario could help the sellers to catch a new downtrend.