Red lines- bearish medium-term channel
Blue line- short-term support trend line
AUDUSD is trading around 0.6627 after making a new lower low at 0.6607. Price has reached the upward sloping support trend line and respected it. Although price remains inside the medium-term bearish channel, short-term momentum remains bullish as price is making higher highs and higher lows since the 0.6275 low. The recent rejection at 0.6750 was a sign of weakness and we could be at the start of a new downward wave. For this bearish scenario to be verified, bears will need to break below blue support trend line. Channel resistance is at 0.6730. AUDUSD is at critical junction. A new upward wave could start if bulls manage to hold price above the blue trend line. Breaking out of the red medium-term bearish channel would be an important win for bulls.
