AUD/USD Technical Analysis: Channel breakdown favors re-test of 0.7050

Omkar Godbole FXStreet Contributor

The channel breakdown seen in AUD/USD's 4-hour chart indicates the pair could soon fall back to recent lows near 0.7050.

It also means the probability of pair validating yesterday's bearish outside candle with a close below 0.7070 is high. That would open the doors for a deeper drop below the psychological support of 0.70.

4-hour chart

Daily chart

Trend: Bearish

1. R3 0.7318
2. R2 0.7263
3. R1 0.7181
PP 0.7126
1. S1 0.7044
2. S2 0.6988
3. S3 0.6907

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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