- AUD/USD is pulling again inside a short-term downtrend.
- The correction is kind of shallow and can most likely run out of steam and result in a resumption of the bear pattern.
AUD/USD reversed pattern on the August 29 highs and began declining. The pair has since established a sequence of falling peaks and troughs which signifies the short-term pattern has most likely reversed and is now bearish.
Given it’s a cornerstone of technical evaluation idea that “the pattern is your good friend” the chances now favor an extension of the downtrend to decrease lows.
AUD/USD 4-hour Chart
AUD/USD bottomed at 0.6685 on September 4 and has been pulling again increased in a counter-trend response since. This correction has been fairly shallow, nonetheless, and it’ll most likely quickly run out of steam, after which bears will push worth decrease once more in keeping with the pattern.
A break under the 0.6685 low would verify a continuation of the downtrend. The subsequent goal under that’s 0.6645, adopted by 0.6587, the Fibonacci 0.50 ratio retracement stage of the August rally.
