AUD/USD Price Analysis: The bearish pattern continues and a test of 0.72 could be next

• AUD/USD is trading over half a percent lower on Tuesday. 
• At the start of the EU session commodities currencies were in bad shape.

AUD/USD 4-hour chart

Commodities currencies are underperforming today and have been hit hard. The Australian dollar has actually held up better than NZD and CAD. All this comes as copper is over 1.3% lower and WTI has fallen over 6%. This week it seems if the market was looking to see if the USD strength could continue and the greenback did not disappoint. 

Looking closer at the chart there has been some support recently. The price has bounced off 0.7225 and this is an area which has been used on multiple occasions. After the price broke the 0.73 psychological level the bulls came back up to test the zone but then hit a brick wall. The downside bias may continue now and if the blue horizontal line is broken the price might test the red upward sloping trendline. If the trendline does break then a change of trend is way more likely. 

The indicators are both bearish. The MACD histogram is red and the signal lines are below the zero point. The Relative Strength Index has been in the oversold area recently but it has just had another test lower. There may be a small recovery in the Relative Strength Index but that does not mean the price has to follow. Over time there might be another test of the oversold area under the 30 area. 

Overall, it is looking more and more likely that a deeper correction is taking place. The price has made a new lower high lower low pattern and now only the trendline and blue support level stand in the way of a technical trend change.

Additional levels