AUD/USD – Flag Pattern and the Bearish Outlook

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AUD/USD - Flag Pattern and Bearish Outlook

The AUD/USD has been a very bearish pair since its 2014-high at 0.9505. This week, price fell to 0.8663 and rebounded. Note, that the 0.8660 level is the 2014-low, so we are basically seeing buyers from this pivot. However, as we will see in intra-session charts, AUD/USD looks ready for another bearish attempt.

The AUD/USD rebounded this week from 0.8663 to 0.8816. It essentially held above the 2014-low of 0.8660. However, price is now trying to break the flag pattern formed in the past couple of sessions. A break below 0.8630 should clear below some support factors and if the 1H RSI also falls back below 40, we could be seeing a bearish continuation. If price extends below 0.8660, the next support pivots are at 0.8677, the January 2010 low, and then the 0.8066 level, the 2010-low.

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