FxWirePro: AUD/USD dips below lower range, bearish bias increases

The AUD/USD declined sharply on Thursday as Australian dollar pressured by lower commodity prices and firmer dollar across the board.
Much of the Aussie weakness came after the Fed made positive comments on the job market, reinforcing expectations of a rate hike in June.
Also undermining the Aussie was a sharp 6.5 percent fall in iron ore on Wednesday.
The pair hit session lows at 0.7381, before retreating slightly to trade around 0.7398 levels in the afternoon US session.
The currency pair remains under bears control unless until it trades below 0.7478 resistance level, therefore it is good to sell this pair on rally.
To the upside, the strong resistance can be seen at 0.7478, a break above this level would take the pair towards next resistance level at 0.7545.
To the downside immediate support can be seen at 0.7380, a break below this level will open the door towards next level at 0.7319.

Resistance Levels

R1: 0.7430 (50% Retracement level)

R2: 0.7478 (61.8% Retracement level)

R3: 0.7545 (May 3rd lows)

Support Levels

S1: 0.7380 (38.2% Retracement level)

S2: 0.7319 (23.6% Retracement level)

S3: 0.7300 (Psychological levels)

Related articles