Red lines- bearish divergence
Green line- support trend line
Black lines- Fibonacci retracements
AUDUSD is trading around 0.6920 after getting rejected at the 50% Fibonacci retracement and breaking below the upward sloping support trend line at 0.6935. Currently price seems more likely to close below the support trend line and produce a bearish sign. As we warned in previous posts, AUDUSD justified a price reversal. Price not only got rejected at the 50% retracement, it also provided a warning with a bearish RSI divergence. Now the support trend line and also lower wedge boundary is broken. AUDUSD is expected to move lower over the following sessions. Resistance is at 0.6985 and we prefer to remain bearish as long as price is below that level.
