- AUD / USD is trading just below the lower end of the ascending triangle on the 4 hour chart.
- The indicators also signal a bearish bias and suggest possibilities for deeper declines.
The AUD / USD drop to 0.6430 was observed after the dismal Aussie job data activated a bearish index on a technical chart.
The 4-hour line graph now signals a decomposition of the ascending triangle. The bearish reversal pattern indicates that the rally from lows below 0.5750 (according to the line chart) observed in March has ended and the sellers have regained control.
The breakdown is supported by a reading below 50 or bearish on the relative strength index (RSI) of the 4-hour chart. The 14-week RSI also dropped from 50, restoring bearish bias.
With charts indicating bearish conditions, the pair risks falling to immediate support at 0.6379 (the bottom of the ascending triangle). On the upper side, a daily close above 0.6570 (April 30 high) is needed to revive the upside bias.
4 hour chart