The AUD/USD pair rose on Wednesday on increased risk sentiment in the market.
After moving to a maximum of 0.7037, the price of the pair continues to decline from a few pips below the four-hour Quasimodo resistance 0.7042 and falls to 0.70. Today the price is likely to fall below 0.70 to four-hour support 0.6930 (green).
In the weekly time frame, the opening level of 2020 0.7016 and the opening level of 2019 0.7042 will be acted as a resistance. Some traders may notice that the above-mentioned resistance is below the 61.8% Fibonacci retracement ratio 0.7128 (green). The 0.6677 level will act as support in the weekly time frame.
Price in the daily time frame has been tested below Quasimodo resistance 0.7049, which is associated with the trend line support (currently resistance) taken from the lowest 0.6670. The 0.6751 and 200-day SMA (orange – 0.6673) will also act as support in the daily time frame.
Due to the weekly resistance (0.7042/0.7016) traders from 0.70 to four hours are not getting the advantage to move upwards. However, it is not impossible to rise above 0.70 as the current upward trend is much stronger.
However, if the time frame closes below 0.70, breakout sellers will enter the market.