Blue line- support trend line
Red rectangle- resistance (previous support)
Blue rectangle - short-term target
AUDUSD broke below 0.6890 support yesterday and provided us with the first important sign of weakness in the near term. Price has started making a sequence of lower lows and lower highs. Price fell as low as 0.6860 and made a lower high at 0.6919. Price is now back testing the broken support which is now resistance. AUDUSD can continue lower towards the blue rectangle target area. As long as price is below 0.6920 we remain short-term bearish.
