There is a large bearish pin bar posted on Monday, which might be a negative sign for the Australian dollar. It usually leads to a halt of the bullish momentum, and most of the time, it implies a reversal in trend.
This time, it also looks like bulls are exhausted, and a correction could occur. If the AUDUSD pair closes below 0.7260 on a daily basis, the pin bar could be confirmed, with the next stronger support at 0.7240. Should the Aussie decline below these levels, further leg lower toward 0.72 seems likely.
Alternatively, if that pin bar is ignored and the market continues to rally, the resistance zone now stands in the 0.7320 - 0.7340 area. Bulls need to push the pair above this level to confirm the medium-term uptrend.
Stocks are down today, which should undermine the AUDUSD pair, but it remains resilient so far. We'll see how the situation develops throughout the US session.
