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Bear Flag Formation

  • RES 4: 0.6750 50-day EMA
  • RES 3: 0.6671 High Sep 22
  • RES 2: 0.6610 20-day EMA
  • RES 1: 0.6550 High Sep 26
  • PRICE: 0.6408 @ 14:19 BST Oct 7
  • SUP 1: 0.6363 Low Sep 28 and the bear trigger
  • SUP 2: 0.6337 Low Apr 24 2020
  • SUP 3: 0.6283 Low Apr 23 2020
  • SUP 4: 0.6255 1.236 proj of the Apr 5 - May 12 - Jun 3 price swing

AUDUSD continues to consolidate and this pause in the downtrend appears to be a bear flag, reinforcing bearish trend conditions. The recent break of support at 0.6682, Jul 14 low and a bear trigger strengthened a bearish case and this maintains the broader downward price sequence of lower lows and lower highs. The focus is on 0.6337 next, the Apr 24 2020 low. Initial firm resistance has been defined at 0.6610, the 20-day EMA.

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