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  • AUD/USD bears sit patiently awaiting a break and re-test of old support.
  • Bulls need to get above 07200 but resistance is strong. 

AUD/USD is holding above a key support and the 4-hour 21 moving average which leaves conditions bullish. 

However, on a longer-term outlook, there are good reasons where there is a focus on the downside, including the feasible direction in the US dollar as explained in this link just below:

  • DXY Price Analysis: EM-FX/DXY could be a tell-tale sign of things to come

Meanwhile, in the following topdown analysis, these are illustrated on the monthly and daily charts:

Monthly chart

The monthly wick is compelling and may at least coincide with dollar strength.

Weekly chart

The daily chart is offering prospects of a downside extension to fill in the monthly wick.

4-hour chart

The bears are looking for the current resistance to hold and lead to a retest of the current support that will turn new resistance. 

The price will then be below structure and the 21-moving average for additional conviction.