AUDUSD TECHNICAL OUTLOOK: BEARISH
- AUDUSD recoils from trend resistance, signals a top is in place
- Near-term support at 0.6827, with 2019 low at 0.6744 following
- Overall chart setup still hints at descent to challenge 0.67 figure
Get help building confidence in your AUDUSD strategy with our free trading guide!
The Australian Dollar tracked lower after a retest of support-turned-resistance at the bottom of a bearish Descending Triangle chart pattern, as expected. Prices attempted to recover after breaking counter-trend support and even managed to set a higher swing top, but the effort fizzled. A bearish Evening Star coupled with negative RSI divergence now reinforces the case for a reversal.
![Australian Dollar vs US Dollar price chart - daily](https://a.c-dn.net/b/19g1nD/AUDUSD-Technical-Analysis-Aussie-Dollar-Top-May-Be-in-Place_body_Picture_1.png)
From here, the next significant layer of support seems to be in the 0.6827-65 area, marked by recent attempts to challenge trend-defining support at the January 2016 low. Securing a break below that on a daily closing basis probably opens the door for a challenge of the 2019 spike low at 0.6744. The outermost layer of downward-sloping trend resistance is now at 0.7088.
Zooming out to the weekly chart, overall technical positioning continues to suggest the AUDUSD downtrend started in early 2018 has resumed following a period of congestion. While the support at 0.6827 is yet to be broken, measuring the width of the Descending Triangle pattern defining the digestive period prior to breakdown implies a steeper decline to test the 0.67 figure.
![Australian Dollar vs US Dollar price chart - weekly](https://a.c-dn.net/b/3ptjj9/AUDUSD-Technical-Analysis-Aussie-Dollar-Top-May-Be-in-Place_body_Picture_3.png)
AUDUSD TRADING RESOURCES
- Just getting started? See our beginners’ guide for FX traders
- Having trouble with your strategy? Here’s the #1 mistake that traders make
- Join a free live webinar and have your trading questions answered
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
To contact Ilya, use the comments section below or @IlyaSpivak on Twitter