Red lines- medium-term bearish channel
Blue lines- wedge pattern
Yellow line- bearish divergence
AUDUSD is trading around 0.6770. Technically short-term trend remains bullish as price continues making higher highs and higher lows. However recent price action is very choppy. Price remains inside the medium-term bearish channel and the RSI has started providing bearish divergence warnings. AUDUSD has formed a wedge pattern. Support by the wedge pattern boundary is at 0.6740. Resistance by the wedge pattern and the red bearish channel is at 0.6930-0.6940. There are increased chances we see a reversal and break below the wedge pattern over the coming sessions. Upside potential is limited. Bulls need to be very cautious.
