Red lines- bearish channel
yellow line- bullish divergence
Blue line- support trend line
AUDUSD is breaking above and out of the medium-term bearish channel. Price has broken above the recent highs at 0.6895 and is making again higher highs and higher lows. Support remains key at 0.6650. Bulls are in control as long as price is above this level. The RSI has not made a new higher high yet. There is another bearish divergence. This increases the chances that this upward move will end soon and a pull back will occur. The bearish divergence is only a warning and not a reversal signal. Price must break below the blue horizontal support in order to confirm a reversal in short-term trend.
