FX.co ★ AUDUSD rejected at channel resistance

Red lines -bearish channel

In our previous analysis we talked about the limited upside potential in AUDUSD. We warned traders that price remained inside the bearish channel and resistance at 0.6750 was very important. At the time of our analysis AUDUSD was trading around 0.6685 and we warned of a possible pull back. AUDUSD has so far reached the upper channel boundary resistance and is showing rejection signs. Price is trading below 0.6650 as the bullish momentum has weakened. Recapturing 0.6750 would be an important win for bulls for the medium-term, but with the current rejection bears are fighting back and a new downward move could start from current levels.