Facts:

• The pair bounced off the key resistance area near 0.7130
• AUDUSD sits below the 100-period moving average from H4 interval

Recommendation: Trade: Short position on AUDUSD at market price Target: 0.7067, 0.7000 Stop: 0.7165

Opinion: AUDUSD has been trading in an upward trend recently, but the pair may be experiencing a trend reversal. Looking at the H4 interval, one can see that the price bounced off the key 0.7130 resistance area. The green area near 0.7130 handle on the chart below is marked with previous price reactions and lower limit of 1:1 structure (green rectangles). According to the Overbalance strategy, invalidating 1:1 geometry may herald a resumption of a downward trend. As long as the price sits below 0.7130, the further downward move is the base case scenario. We recommend going short AUDUSD at market price with two targets: 0.7067, 0.7000. We also recommend placing a stop loss order at 0.7165. Source: xStation5