After yesterday's sharp drop of more than 50 pips, it has become clear that the breakout and consolidation above the balance line (blue rectangle) was false, which now shifts the market's focus toward a medium-term decline.
The Marlin oscillator has entered negative territory, confirming the seriousness of the bearish intentions for the AUD/USD pair. The nearest target is 0.6450. A consolidation below it will open the way to the second target at 0.6374.
This morning, weak data came out of China: industrial production growth in July slowed from 6.8% y/y to 5.7% y/y, retail sales dropped from 4.8% y/y to 3.7% y/y, and unemployment rose from 5.0% to 5.2%.
On the H4 chart, the price has consolidated below the MACD indicator line. The Marlin oscillator moved into negative territory exactly 24 hours ago. We continue to monitor the further development of the downtrend.
