Green lines - bullish divergence
Red line- resistance trend line
AUDUSD made new lows today approaching even closer to the lower end of our long-term target. Price reached 0.6684 but bulls stepped in and try end the day near yesterday's close. Price remains trapped inside a downward sloping wedge pattern while the RSI continues forming higher lows. AUDUSD is trading very close to the lower wedge boundary. Price has potential to bounce higher towards the red trend line at 0.68. Trend remains bearish as price continues making lower lows and lower highs. Once again the bullish RSI divergence is only a warning of a weakening downtrend, not a reversal signal.
