The Aussie has been advancing over the previous days, bolstered mainly by the US dollar weakness.
- The pair broke some important levels on the way higher and was testing the $0.72 resistance during the London session on Wednesday.
- The pair is likely heading lower in the near future, targeting the broken resistance of $0.7150, which will now act as a support.
- If the $0.7210 resistance falls, further upside toward $0.7270 is expected, where September and post Federal Open Market Committee highs are seen.
- Intraday outlook is in favour of bears, but it should only be a short-term correction. Selling at the current levels might be a good entry point, with stops above $0.7220. Bears should target the mentioned $0.7150 support for today, which is expected to hold, as the US dollar remains under pressure against commodity-linked currencies.
