- AUD/USD trades just below the lower end of the 4-hour chart ascending triangle.
- Indicators, too, are reporting a bearish bias and suggest scope for deeper declines.
AUD/USD’s decline to 0.6430 seen following the dismal Aussie jobs data has activated a bearish cue on a technical chart.
The 4-hour line chart is now reporting an ascending triangle breakdown. The bearish reversal setup indicates the rally from lows below 0.5750 (as per line chart) observed in March has ended and the sellers have regained control.
The breakdown is backed by a below-50 or bearish reading on the 4-hour chart relative strength index (RSI). The 14-week RSI has also turned lower from 50, restoring the bearish bias.
With charts signaling bearish conditions, the pair risks falling to the immediate support at 0.6379 (the higher low of ascending triangle). On the higher side, a daily close above 0.6570 (April 30 high) is needed to revive the bullish bias.