Red lines- bearish channel
Blue line- support trend line
AUDUSD is trading around 0.6651. Price remains inside the medium-term bearish channel and above the short-term upward sloping support trend line. As long as the blue trend line remains intact, we expect AUDUSD to re-test recent highs and upper channel boundary around 0.6720-0.6750. Support is found at 0.6620. A break below this level will be a bearish signal and we should then expect AUDUSD to fall towards 0.6480-0.6420. Will AUDUSD continue its upward movement that it started at 0.6275 or is it at the early stages of a new downward wave? We believe the blue trend line is the key.