Retreats from session highs, triggering rising channel breakdown

AUD/USD has pulled back from session highs and risks falling below 0.66.
The 15-minute chart shows an ascending channel breakdown.

AUD/USD is now trading largely unchanged on the day at 0.6615, having put in a session high of 0.6635 an hour ago.

The retreat from session highs has confirmed a rising channel breakdown on the 15-minute chart. The pattern indicates the bounce from Wednesday’s low of 0.6567 has ended and the bigger retreat from the high of 0.6675 observed earlier this week has resumed.

The rejection at 0.6635 has also reinforced the bearish view put forward by the double top breakdown confirmed on the 15-minute chart on Wednesday. As a result, a re-test of Wednesday’s low of 0.6567 cannot be ruled out.

On the higher side, a daily close above the 200-day simple moving average (SMA) at 0.6653 is needed to revive the bullish trend from March lows below 0.56. The pair failed to close above that average for the second consecutive day on Wednesday.