As the US dollar continues to rise, investors are selling equities and riskier currencies like the Australian or New Zealand dollar. The AUDUSD pair has rebounded from a multi-year resistance zone and is trading below its moving averages but still between the boundaries of the Bollinger band on the daily chart. To retest the previous high, the exchange rate should rise above the 0.7840 level, which would indicate that the bulls still have some strength.
Should the pair continue to decline, the first support level would provide a previous low around the 0.7590 - 0.7560 area. The next support level to stop the decline could be in the 0.7340 - 0.7220 zone and the November low around 0.7000 (C), from where the last longer-term rise started. The MACD indicator is also showing a downtrend.
