Possible weakness on the AUD/USD

The AUD/USD had been retracing to the downside since mid-July after reaching a peak around the 0.8066 level as shown on the daily chart. After the high at the 0.8066 level, the pair started to drop towards the 55 day EMA (purple line), around the 0.7800 level. During that drop, the stochastics indicator also dropped to the 20% zone to change direction to the upside at the same time that the AUD/USD started breaking above the 0.7900 level. At the moment, the 0.7900 level is acting as support, but the price of the AUD/USD has not been able to reach the 0.8000 level. The stochastics have reached the 80% zone and are trying to change direction to the downside; therefore, the pair may try to go back to its bearish trend. Below the 0.7900 level, the most important support levels are the 0.7800 level or the 0.7700 level, but a more relevant support could be the 200 day EMA (blue line) around the 0.7650 level.