Red lines- medium-term bearish channel
Blue line- horizontal support
Yellow line- bearish divergence
AUDUSD is trading around 0.6760. Price remains inside the medium-term bearish channel and below the upper channel boundary. Price is very close to the upper channel boundary resistance of 0.6885. As long as this is the case trend will remain bearish and this upward move is a counter trend bounce. Zooming in on the chart we see today a lower high in price and the appetite to move lower. Support is key at 0.6647. A break below this level will be a bearish signal and we will prefer to be short after such a break down. First pull back target would be at 0.6520 and maybe lower. The bearish RSI divergence suggests that the upside is limited and bulls are not strong enough to start a new upward wave from current levels. Upside is limited.
