Red lines- Bearish channel
AUDUSD is trading around 0.6276 after bouncing higher towards 0.6350. In our analysis two day ago we notified traders that current market conditions justified a bounce towards the upper channel boundary at 0.64. The recent bounce reached 50 pips away from the channel resistance. Price remains inside the bearish channel. Trend remains bearish. Price made a bullish reversal candlestick yesterday but early strength today is followed by selling pressures. For a trend change to be confirmed, we need to see price break out of the bearish channel. Resistance at 0.64 remains key and as long as price is below this level we remain bearish.
