Review and dynamics
Amid sharp rise in the USD the pair AUD/USD has broken down important support level of 0.7510 (ЕМА200 on the daily chart, ЕМА50 on the weekly chart) and remained in the descending channel on the daily chart with the lower limit below 0.7315 (lows of November).

For the second day the pair has been trying to regain upward trend. However, despite upward correction the current rise the pair AUD/USD remains below the levels of 0.7510, 0.7445 (Fibonacci 23.6% after the decline since July 2014).

Our opinion
On the weekly and monthly charts the indicators OsMA and Stochastic give sell signals. On the 4-hour chart the indicators give signals for long positions, showing that upward correction continues.

Breakout of the resistance level of 0.7445 may trigger the rise to 0.7510 (ЕМА200 on the daily chart). If the rise continues, the pair may go up to 0.7510 or even to 0.7700, 0.7775, 0.7820 (Fibonacci 38.2% and the highs of April), 0.7960 (ЕМА144 on the weekly chart) and 0.8130 (Fibonacci 50.0% and ЕМА200 on the weekly chart).

If the pair resumes downward movement and breaks down the levels of 0.7375 and 0.7315, next target will be at the level of 0.7140 (lows of May).

Break down of the two key support levels of 0.7510 and 0.7445 may indicate the end of the upward correction after the decline since July 2014. In this case, the pair may go down to the lows of 0.6835.

Support levels: 0.7375, 0.7315, 0.7290, 0.7200 and 0.7140.
Resistance levels: 0.7445, 0.7510, 0.7600, 0.7700, 0.7750 and 0.7820.

Trading tips
Sell on the market. Stop-Loss: 0.7450. Take-Profit: 0.7375, 0.7315, 0.7290, 0.7200 and 0.7140.
Buy Stop: 0.7450. Stop-Loss: 0.7390. Take-Profit: 0.7510 and 0.7600.

In the descending channel
In the descending channel

Upward correction may reach the levels of 0.7445 and 0.7510.
Upward correction may reach the levels of 0.7445 and 0.7510.

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