Matter of Money

The Australian dollar is an interesting pair at the moment. The long-term channel suggests a possible move up to about the 0.77 level. Inside the large one, there is an even steeper downtrending channel, which is pushing price towards 0.65 and lower. A shorter term bullish trendline (green dashed) will have to hold and break the blue downtrend for 0.77 to be in play. If it breaks, my expectation is a continuation of the breakdown to new lows below 0.65.

This looks like a bear market, until the downtrends are invalidated.

The bears are in command. But I will be looking for signs of reversal at the lower edges of these two channels which are not too far away anymore.