AUD/USD has found a temporary support near 0.6586 low and now is fighting hard to rebound. The outlook is still bearish as long as the price is located below a downtrend line. We may have an important upside movement if the potential double bottom pattern is confirmed.
AUD/USD is trading within a downward channel and that's why it is premature to talk about a reversal at this moment. The pair has failed to approach and retest the downside line, signaling that the price is oversold, a comeback to the upside line is favored.
The price is developing a potential double bottom on the H4 chart. This pattern will be valid only after a valid breakout above the 0.6638 high, above the PP (0.6648) and above the downtrend line.
I've drawn a minor ascending pitchfork to catch a potential upside movement, you can see that the price has retested the lower median line (lml) which has been proved as a dynamic support.
- Trading Recommendation
The outlook is bearish on the H4 chart as long as the price is trading below the descending channel resistance. AUD/USD could drop anytime if it is rejected again or if we'll see a false breakout above the near-term resistance levels. A valid breakdown below the lower median line (lml) will confirm a drop at least till the S1 (0.6563) level, or towards the downside line. In case of a double bottom pattern, we could have a potential increase at least till the median line (ml) of the ascending pitchfork, the second target is seen at R1 (0.6710) level.
