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Bear Flag Reinforces A Bearish Theme

AUDUSD TECHS
  • RES 4: 0.6900 High Jun 16 and a key resistance
  • RES 3: 0.6871 High Dec 28 and the bull trigger
  • RES 2: 0.6729/71 High Jan 12 / 3
  • RES 1: 0.6626 50-day EMA
  • PRICE: 0.6568 @ 07:29 GMT Jan 31
  • SUP 1: 0.6526/25 Low Dec 7 and key support / Low Jan 17
  • SUP 2: 0.6500 61.8% Fibonacci retracement for Oct - Dec upleg
  • SUP 3: 0.6453 Low Nov 17
  • SUP 4: 0.6412 76.4% Fibonacci retracement for Oct - Dec upleg

From a trend perspective, a bearish theme in AUDUSD continues to dominate and the latest pause appears to be a flag formation - a bearish continuation pattern. A resumption of weakness would open 0.6500, a Fibonacci retracement and the next objective. Clearance of this level would further strengthen the current bearish theme. Initial resistance is at 0.6627, the 50-day EMA.

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