- A multi-week bearish trendline caps AUD/USD's upside.
- The immediate outlook stands neutralized due to rejection at the key trendline.
- Friday's low is now the level to beat for the bears.
AUD/USD currently trading in the red at 0.7216, having faced rejection at 0.7234.
That level is housing the trendline connecting Sept. 1 and Sept. 18 highs.
A close higher would imply an end of the pullback from the Sept. 1 high of 0.7413 and bullish reversal.
Indicators like the MACD histogram and the 14-day relative strength index are reporting bullish conditions. In other words, they have aligned in favor of an upside break of the bearish trendline.
Bearish scenario
If followed by a move below Friday's low of 0.7162, the latest rejection at the trendline hurdle would confirm an end of the bounce from the Sept. 25 low of 0.7006 and reversal lower.
That would expose support at 0.7096 (Oct. 7 low) and 0.7006 (Sept. 25 low).
Daily chart
Trend: Neutral
Technical levels
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