AUDUSD H4 | Our expectations:
During the Asian hours, the pair moved to the resistance of 0.7095, grounded by positivism for a US-China deal.
Since the start of the European session, however, the pair pushed back from the top and remained in the triangle.
For traders who trade consolidation, the picture is good for taking short positions at current levels, given that long-term traffic remains short.
Possible tests of the supports are around 0.7040, 0.7025, 0.7000-05.
Break below the psychological level of 0.70 may cause a serious drop in the pair and flash crash to 0.6750.
An alternative break above the last support of 0.7100 may lead to a new 200SMA test and even a diagonal resistance test up to 0.7130.
Trader Nikolay Georgiev