AUD/USD Will Likely Bounce off from 0.8050

AUD/USD has been consolidating sideways for a little over a month and the consolidation continues for now. That said, as a consequence of that sideways consolidation the pair has formed a very telling hanging man candlestick on the largest time-frame – the monthly one. The hanging man candlestick is at the resistance at 0.8050 and is a clear signal that the pair will likely bounce off from the aforementioned level and start moving to the downside again. Should that occur, the closest target is the previous low at 0.7806. A breakout below that level will probably lead to a further drop towards the next support at 0.7760, which coincides with the (MA)89 indicator on the daily time-frame.