- Aussie bears eye lower end of the falling channel at 0.7170.
- Hourly RSI flatlined, in the bearish region.
- Downside bias intact while below 21-HMA at 0.7201.
The AUD/USD sellers have returned in the European session after the price failed to sustain its uptick above the 21- hourly Simple Moving Average (HMA) at 0.7201.
Subsequently, a test of the immediate support of the falling trendline at 0.7170 is likely to be tested. A break below which the horizontal 100-HMA at 0.7160 could likely challenge the bears’ commitment.
Note that the spot wavers in a falling channel formation on the hourly chart. The pattern’s natural tendency is to resume the previous uptrend should it be confirmed.
Therefore, the bulls will re-attempt the 21-HMA support-turned-resistance if the aforesaid falling trend line (pattern) support is held onto.
Acceptance above 21-HMA could open doors towards the falling channel (pattern resistance) at 0.7213.
The pattern will get validated on an hourly closing above the latter, with a test of the pattern target above 0.7250 inevitable.
AUD/USD: Hourly chart
AUD/USD: Additional levels
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