Red lines- bearish channel
AUDUSD is trading around 0.6765 after several strong bullish weeks that brought price from 0.6173 to 0.6853. Price remains inside the medium-term bearish channel as shown in the weekly chart in this post. Over the last couple of weeks price had reached very close to the upper channel boundary which is key resistance. This week AUDUSD starts on a negative note. Will we see a reversal from current levels? The chances for a reversal to the downside are high. Price has been making higher highs and higher lows in the Daily frame but the RSI is not. The bearish RSI divergence is our first warning. Reaching close to channel resistance and stopping the advance is another signal. Now trader also need a verification by price.If price breaks below 0.6670 then we will get our first reversal signal.
