AUDUSD Chart Technical Outlook expects intraday trading to remain volatile
Correlation studies suggest that the medium-term bias for AUD/USD is to the downside.
AUD/USD – currently trading within a bullish channel formation. Trend line support is located at 0.6492. Bespoke resistance is located at 0.6580 and 0.6584. A move to 0.6594 will form a bearish Bat pattern.
Conclusion: I am expecting continued volatility. With the medium-term focus being on lower levels, the preferred stance is to sell the completion of the BAT formation at 0.6594. A move through the previous swing high of 0.6610 negates the pattern. Focusing on the trend of higher lows at 0.6500 offers a risk-reward factor of 4.09R.
Resistance: 0.6543 (swing high), 0.6580-84 (bespoke), 0.6594 (Bat)
Support: 0.6492 (channel base), 0.6469 (swing low), 0.6397 (78.65)
