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AUD/USD bulls look to the 38.2% Fibonacci of the previous bearish leg and then 0.6725 which protects a continuation higher.
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Bears are in the market and eye a move deeper into support.
AUD/USD is under pressure below a key 0.6720 area and the focus is on the downside for the immediate future. The following illustrates the bias and the prospects of a deeper move into support:
The bias is bullish while being on the back side of the prior bearish trend although there is an emphasis on the downside for the meanwhile on the lower time frames:
Zooming in, we can see that AUD/USD has left an M-formation on the 4-hour chart. Currently, a correction to the neckline would meet the 38.2% Fibonacci of the previous bearish leg. Either way, while down here, the downside is the bias to check deeper into the support area. 0.6725 is an upside resistance protecting the continuation higher following a bullish breakout.
