Technical analysis
The AUDUSD has broken below its lower Bollinger Band on the daily time frame, meaning that the downtrend in the pair is starting to accelerate.
According to the RSI indicator the AUDUSD pair is bearish, however, the indicator is now approaching slightly oversold conditions.
What the possible outcomes are
In our most likely scenario, the AUDUSD pair falls towards at least the 0.7280 level as a bearish head and shoulders pattern continues to unfold to the downside on the daily time frame.
Alternatively, the AUDUSD could test towards the 0.7280 support level and then start to rebound towards the 0.7400 level, due to the fact that the pair is approaching slightly oversold trading continues.
Key levels
Support 0.7280 0.7150
Resistance 0.7400 0.7560
