Yellow line- bearish divergence
Blue line- support
Red lines- bearish channel
AUDUSD is trading around 0.6870 just below the upper channel boundary resistance. Short-term trend is mixed as price has not made any real progress over the last few days. Support is key at 0.6650 and a break below this level would provide a sell signal. Price remains inside the medium-term bearish channel as the RSI is not following price to new higher highs. The combination of the bearish divergence and the fact that price is just below major resistance, makes it more appealing to bears to open new short positions at current levels. Less aggressive investors would wait to take action after the FOMC Minutes to be published later today.
