AUDUSD has so far made a triple top at 0.70 area and has now pulled back towards 0.6920. Price has bounced all three times from 0.6920 as it does today. Upside potential for the short-term is at 0.7085-0.71 if we break above 0.70. If support at 0.6920 fails to hold and the trading range is broken downwards, then we should expect price to fall towards 0.6850-0.6830.
Green rectangle- lower trading range boundary
Red rectangle - target if lower boundary fails to hold
Black lines - upside potential equal to previous upward move
AUDUSD current price favors bullish positions as the risk reward ratio favors bulls. The risk to be bullish here is lower as the stop loss at the lower channel boundary is very close and the upside potential is bigger. If price moves towards the blue rectangle resistance area and gets rejected, then the bears will have a more favorable risk reward ratio.
