AUD/USD distribution pattern

The AUD/USD pair extends its sideways movement in the short term. It's located at 0.6378 at the time of writing, but it seems undecided. The bias is bearish, so the current range could announce a potential downside continuation.

Fundamentally, the Australian Trade Balance came in at 8.04M versus 10.05B expected. In addition, the Chinese Trade Balance and USD-Denominated Trade Balance came in worse than expected as well.

Earlier, the US Unemployment Claims and Revised Unit Labor Costs came in better than expected, while Revised Nonfarm Productivity came in line with expectations. Later, the BOC Gov Macklem Speaks could move the USD as well.

AUD/USD is trapped between the 0.6404 and 0.6357 levels. Because the bias is bearish, the sideways movement is seen as a bearish formation.

The median line (ml) of the descending pitchfork represents a potential downside obstacle. Only false breakdowns below the immediate support levels may announce a new bullish momentum and invalidate a downside continuation.

Dropping and closing below the 0.6357 and under the median line (ml) opens the door for a larger drop. This is seen as a selling opportunity.