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24.08.202010:48 Forex Analysis & Reviews: AUDUSD remains inside wedge pattern

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In our previous analysis we noted the bearish wedge pattern formed in AUDUSD. We prefer to prepare for a bearish trade if certain support levels fails to hold, as we expect price to eventually break below the lower wedge pattern boundary and push towards 0.69.

Red lines - wedge pattern

The RSI is forming a bearish divergence as price is making new higher highs and the RSI is not. Price has more potential to the upside and more specifically we can see AUDUSD reach even 0.73 before breaking the wedge pattern to the downside. The bearish signal will come with the break below the lower boundary at 0.7145. Below 0.7090 we have confirmation of this bearish signal. Until then we remain neutral.

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