AUDUSD Heavily Bearish

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

Octa
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Octa (formerly OctaFX) is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and a variety of services already utilised by clients from 180 countries with more than 40 million trading accounts.

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