FxWirePro: AUD/USD key resistance at 0.7120, sell deals are recommended around 0.7080

• AUD/USD has rebounded strongly towards 0.7056 earlier in European session. However, the pair is struggling to break strong resistance located at 0.7078 50 fib level, the pair is trading in overbought condition, as the Aussie has ran out of strength against US dollar. The pair is expected to decline towards 0.7680 and later towards 0.7640 levels in the short term.

• The resistance level at  0.7120 (61.8% Retracement level) is likely to hold the Aussie bulls  for any further advance and push the pair downwards, therefore short rally near 0.7070 should be taken as advantage for selling opportunities.

• Immediate resistance can be seen at 0.7078 (50% Retracement level), A break above this level would take it to next resistance level at 0.7120 (61.8% Retracement level), to the downside, the first support level lies at 0.7037.                        

Recommendation: Go short below 0.7080, targets 0.7020, 0.7680, SL 0.7160

Resistance Levels

R1: 0.7078 (50% Retracement level)                        

R2: 0.7120 (61.8% Retracement level)

R3: 0.7154 (Sep 1^st)

Support Levels

S1: 0.7037 (38.2% Retracement level)

S2: 0.7015 (Sep 9th   lows)

S3: 0.6997 (23.6% Retracement level)