Greetings traders,
As shown on the 4H chart above, AUDUSD has successful broken out of the rising channel and has retested on the 0.7143 level. We expect this pair to continue its downtrend.
Looking at the Daily timeframe, we can see that price has rejected 0.7205 level and the trendline resistance, forming a bearish engulfing candlestick pattern. This shows that sellers are not done pushing this price to the downside, thus we could probably see AUDUSD going down a bit more.
What could probably happen in the future is that price would form a double bottom on the Monthly support of 0.7050 before going bullish again and breaking out of the trendline it’s currently under.
Overall, AUDUSD is going to be a sell until it bounces off that Monthly support or future market structure changes otherwise.