The decline of the AUD/USD currency pair was limited by the parity level against the US dollar. As it was noted before, a breakout of the resistance level of 1.00 targeted the currency pair at 1.05. In case of the successful breakthrough of 1.00 to downside, the next important support will be the mark of 0.9646.
At a week graph the AUD/USD has formed the bullish combination of candlesticks Bullish Engulfing, which indicates the uprising motion, confirmed further.
In favor of upside movement comes the fact that this combination of candlesticks emerged on the uptrend after a rebound from the support level of 0.8066 and from the Fibonacci correction level 38.2, where the bears did not solidify and the bulls started increasing their influence.
This combination of candlesticks shows that the currency pair was declining after the failure to break out the resistance level of 0.9394. However, the pair reversed having come closer to 0.8066.
The fact that the AUD/USD broke through the mark of 0.8855 denotes that this point of view is correct.
On the other hand the long positions should be closed in case the support level of 0.9400 is breached, as it will lead to downside movement to 0.8765.