AUDUSD Price is Testing First Resistance Level

Price bounced from major support level in early October. In which over the weeks, price saw gains as high 1.60%. Now price is facing the first resistance level of the bearish channel, which spans back to the end of August. Look for a potential bearish reversal. Look closely to the Chinese markets and economic data for potential bearish catalyst.

Trade Step-ups:

Scenario One (Bearish Reversal): Price rejects a bullish breakout from the current support level.

Scenario Two (Bullish Breakout): Price breaks current support level, look for consolidation above 0.7170 against the dollar.