Red lines- bearish channel
Yellow line- bearish divergence
Blue lines- wedge pattern
AUDUSD is trading around 0.6718. Price remains inside the medium-term downward sloping bearish channel and recently it broke out and below an upward sloping wedge pattern. Also recently the RSI has provided us with bearish divergence warnings. All these signs point to further weakness and as long as price is below 0.6890, we remain bearish expecting a move towards September lows. Upside potential in AUDUSD is limited and we prefer to be neutral if not bearish at current levels.
