AUD/USD technical analysis: Bears flirting with 1-week old descending trend-channel support
• The AUD/USD pair now seems to have entered a bearish consolidation phase and was seen oscillating in a narrow trading band near 4-1/2 month lows.
• The mentioned region marks the lower end of a one-week-old descending trend-channel and should now act as a key trigger for bearish traders.
Technical indicators on daily/hourly charts have moved on the verge of breaking into oversold territory and seemed to be the only factor holding investors from placing any fresh bearish bets.
The set-up warrants some near-term consolidation/a modest bounce before the pair eventually confirms the trend-channel breakdown and resumes its well-established bearish trend.
A bearish breakdown might turn the pair vulnerable to slip further below the 0.6900 handle and accelerate the slide towards challenging its next major support near the 0.6835-30 region.
On the flip side, any attempted recovery might continue to confront some fresh supply near the 0.6935-40 region and seems more likely to remain capped near weekly tops, around the 0.6960 level.
AUD/USD 1-hourly chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
