AUDUSD is inside an upward sloping wedge pattern as we have identified from a previous analysis. The lower wedge boundary remains intact as price respects this support at 0.7130. I prefer to be patient and wait for support to break an initiate a bearish position looking for a move at least towards 0.69.
Although there is ample upside potential, as price could reach the upper wedge boundary near 0.73 before making a correction, I prefer to be patient and wait. There is bearish divergence by the RSI and I prefer to go short once the red wedge boundary line is broken. Confirmation of the bearish signal will come once price also breaks below 0.7070. Our first pull back target will then be 0.69.
