On Tuesday, the risk-off session sent the Australian dollar sharply lower, and it was nearly 1% weaker during the US session, trading at 0.7270, the lowest price since November 2020.
Bears managed to push the Aussie below the strong support of 0.73, and stop-losses were hit, immediately pushing the pair 20 pips further lower. The next near-term target could be at 0.7240.
At the same time, it looks like the medium-term trend might change to bearish, targeting the strong support of 0.70. Should sentiment worsen further, the AUDUSD pair tends to drop quickly in a series of 3-4 bearish candles.
Alternatively, if the current resistance of 0.73 is retaken, the Aussie could start rallying, and the breakdown would be false. However, the strong selling zone is still near 0.74, where the pair has failed a couple of times already.
As you can see from the chart, there is a large "gap" of no meaningful supports between 0.73 and 0.70. Therefore, if the bearish pressure strengthens, the decline could be really steep and quick.