Red line- resistance
Green lines- bullish RSI divergence
AUDUSD remains in a bearish trend making lower lows and lower highs. Price has formed a downward sloping wedge pattern and the RSI is providing bullish divergence signals. The downtrend is weakening and the chances of a strong bounce higher increase. The RSI is not making new lows as price does. The red resistance trend line is found at 0.6813 and as long as price is below this level, we expect to see lower prices. However the wedge formation combined with the bullish RSI divergence are an important sign that the downtrend might soon end. Traders need to be cautious. A move higher is justified. A bullish signal will be given once price breaks above the red trend line.
