FxWirePro: AUD/USD forms descending triangle – rejects week highs 0.7224 for breakout

The pair is managed to sustain previous crucial supports at 0.7140 region which has found itself the strength at the same levels and also rejected this price considering this as resistance in recent past as well (see circled areas) but for now it is struggling to hold onto the resistance at 0.7144 levels and same is the case in the historical evidences.

As shown on the weekly charts, swings have formed descending triangle but it has not been able to break and hold the levels of 0.7175 (downtrend line) quite a lot times in the recent weeks, and same does the support levels at 0.7140 on southwards, you can observe how the price behavior of this pair on either side after breaching this level in the recent historical evidences (see circled areas on daily charts).

It's been a clear downtrend both on short term as well as on long term perspectives if it does not manage to sustain decisively the above mentioned supports as the pair has been declining consistently way back in 2011 from 1.10 levels (can observe from monthly charts as well).

More importantly, the bearish pattern like gravestone doji candle even at 0.7210 levels daily charts is popping up that signifies weakness in previous rallies, looks like bears are completely under control.

RSI oscillator has begun diverging to these price recoveries which is near 48 levels, so we don't think the current price jumps would sustain as there were no positive fundamental news to back these upswings. This would mean that selling pressures are piling up.

Subsequently, although there is an attempt of %K crossover below 20's on stochastic curve that shows little buying interests (see daily charts), there is no clear substantiation from other indicators.

The prevailing prices have still slipped below 10DMA which is again one more bearish indication. However, closing basis should be closely monitored.

Hence, if it does not manage to breach 0.7175 level then we could foresee the existing bearish trend to prevail.