What’s next for AUD/USD after 0.7500 has been breached?

The picture isn’t all too clear, but risk can still be defined and limited

The break of 0.7500 was a key breach as it takes the pair below the December low and into territory last seen in the middle of last year.

While the dollar has been riding on solid momentum over the last three weeks, the aussie itself hasn’t really been fighting back to be honest. Now that we’re treading below the 0.7500 level, what comes next for the pair?

From a technical picture, there is quite a number of minor support levels that can be pointed out as shown above (in yellow). Those will be levels to eye in terms of bids and in the case of any retracements.

The key level for me is the May low @ 0.7329. That looks more of a defining level on the chart, and paves the way for a move towards 0.7200 and lower. It looks clearer on the weekly picture:

As I have mentioned before and will mention again, to trade the AUD is also to trade on when the RBA will move. Keep that in mind and trade accordingly. The trick to trade these kind of charts with a lot of minor support/resistance levels is to look at near-term momentum/levels. That is when using tools like the hourly chart to define the bias comes in very handy.

For the case of AUD/USD, as long as price stays below both the key moving averages then the bias is still bearish.