Dissecting AUDUSD

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.




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