The Aussie dollar started a major downtrend from the 0.8000 barrier against the US Dollar.
The AUD/USD pair recently broke a crucial declining channel with support at 0.7140 on the daily chart.

AUD/USD Technical Analysis

The Aussie dollar formed a major top earlier this year above the 0.8100 level against the US dollar. The AUD/USD tumbled during the past few months and traded below the 0.7500 and 0.7400 support levels.

Looking at the daily chart of AUD/USD, there are many bearish signals visible below the 0.7400 level. The pair followed the 50-day simple moving average and a crucial declining channel on the same chart.

Recently, sellers gained momentum and pushed the pair below the 0.7200 support and the same channel support at 0.7140. It opened the doors for more declines and the pair traded as low as 0.7092.

At the moment, the pair is correcting higher above 0.7100 with an immediate resistance near the broken channel at 0.7140. Above this, the next resistance is near the 23.6% Fib retracement level of the last major slide from the 0.7381 high to 0.7092 low.

However, the most important resistance is around the pivot level at 0.7200, which is also the 38.2% Fib retracement level of the last major slide from the 0.7381 high to 0.7092 low. Finally, the channel resistance near the .07350 and the 50-day SMA are likely to act as hurdles.

Overall, the AUD/USD pair remains in a major downtrend and any recoveries towards 0.7200, 0.7300 and 0.7350 can be considered as a selling opportunity in the medium term since only a close above 0.7400 could push the pair back in a positive zone.

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