AUD/USD technical analysis: Off lows, but flag breakdown is still valid

The 4-hour chart shows a bear flag breakdown, a bearish continuation pattern.
The pair remains on the defensive with scope for a drop below 0.67.

Omkar Godbole FXStreet Contributor

AUD/USD has recovered from session lows, but the bulls are not out of the woods yet as a bearish pattern on the 4-hour chart is still valid.

The currency pair is currently trading at 0.68, representing a 0.10% drop on the day, having hit a low of 0.6786 earlier today.

However, it is still too early to call a bullish reversal, as the bear flag breakdown on the 4-hour chart confirmed during the US trading hours on Wednesday is still valid.

The flag breakdown has created room for a drop to 0.6675 (target as per the measured move method).

Supporting the bearish case is the below-50 reading on the 14-day relative strength index (RSI). The MACD histogram is also printing deeper bars below the zero line.

The immediate outlook would turn bullish if and when the pair finds acceptance above 0.6835, invalidating the bearish lower highs setup.

4-hour chart

Trend: Bearish

Technical levels

AUD/USD

Overview
Today last price	0.6797
Today Daily Change	-0.0001
Today Daily Change %	-0.01
Today daily open	0.6798

Trends
Daily SMA20	0.6852
Daily SMA50	0.6814
Daily SMA100	0.6836
Daily SMA200	0.6935

Levels
Previous Daily High	0.6832
Previous Daily Low	0.6789
Previous Weekly High	0.6866
Previous Weekly Low	0.6769
Previous Monthly High	0.693
Previous Monthly Low	0.667
Daily Fibonacci 38.2%	0.6805
Daily Fibonacci 61.8%	0.6816
Daily Pivot Point S1	0.6781
Daily Pivot Point S2	0.6763
Daily Pivot Point S3	0.6738
Daily Pivot Point R1	0.6824
Daily Pivot Point R2	0.6849
Daily Pivot Point R3	0.6867

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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