Red lines- bearish channel
Blue lines- Fibonacci retracements
AUDUSD is trading at 0.6340 and is challenging the upper boundary of the downward sloping channel. Has the entire downward move ended? Is the bearish move complete? A break above and out of the bearish channel is what we need to see in order to talk about a major low and a trend reversal. The upper channel boundary resistance is at 0.6355. If price breaks out of the bearish channel, then we should expect a bounce to reach at least the 38% Fibonacci retracement at 0.6540. AUDUSD is very close to providing a new bullish signal.
