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30.05.202321:54 Forex Analysis & Reviews: AUD/USD Flag pattern signals bearish continuation

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The AUD/USD pair was trading at 0.6517 at the time of writing, far below 0.6559 today's high. Technically, the price escaped from a bearish pattern, so more declines are natural. The DXY's further growth should push the currency pair lower.

Fundamentally, the Australian Building Approvals reported a 8.1% drop versus the 2.3% growth estimated. Earlier today, the greenback received a helping hand from the US economic data.

Still, in the early morning, the RBA Gov Lowe Speaks and the Consumer Price Index could shake the price. These represent high-impact events.

AUD/USD bearish bias

As you can see on the H1 chart, the price tested and retested the median line (ml) and now it has escaped from the flag pattern. As long as it stays below this dynamic resistance and under the downtrend line, the AUD/USD may extend its sell-off.

Still, in the short term, it has found support on the 0.6502 former low again. This is seen as a critical downside obstacle.

AUD/USD forecast

A bearish closure below 0.6502 validates a further drop. This is seen as a new bearish signal. The weekly S1 (0.6450) represents the first downside target.

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