AUDUSD testing major support

25/03/2021

The US dollar seems to be gaining some strong momentum against most of its major peers, and the AUDUSD pair dropped to six-week lows on Wednesday.

It looks like February lows near 0.7570 will be the key level heading into the next week. If that support is broken down, large stop-losses might be hit, which would most likely lead to another leg lower. 

In that case, the next target for bears should be at 0.75, or possibly lower. 

Moreover, it looks like a large head and shoulders pattern on the daily chart, with the full potential of the formation circa 450 pips, and the neckline of the formation is at 0.7570, currently being tested. 

Alternatively, if bulls manage to defend the support, a rally toward 0.76 could occur, with the next target in this short-term bounce at around 0.7630.
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