FX.co ★ Is AUD/USD Poised To Decline?

AUD/USD has escaped from the ascending channel, it has retested the black uptrend line and now it has declined again. Still, a larger drop, corrective phase, could be signaled only by a drop below 0.7660 former low.

I strongly believe that a new lower low could really validate a deeper drop on the H4 chart. So, dropping under 0.7660, 0.7650 levels could represent a selling signal. Technically, the downside scenario could be invalidated by an increase, upside breakout, above the red downtrend line and through the 0.7820 higher high.

Trading Conclusion!

A sharp drop below 0.7660 brings a selling opportunity and confirms a downwards movement. Such a breakdown signal a further drop towards the 0.7500 psychological level.