AUDUSD (0.7060): The Australian dollar was seen extending declines last week. Price action briefly hit the lows near 0.7022 before posting a modest rebound. However, failure to build upon the gains saw the Aussie closing bearish again by Friday’s close. With the Stochastics likely to indicate a bullish divergence, watch the AUDUSD for a potential double bottom pattern being formed near the lows. A bullish divergence with a retest of support near the 0.7000 level could potentially signal a short-term rebound in price action. The upside resistance at 0.7191 comes in at a key level of resistance.
