- AUD/USD’s daily chart is biased toward the bears.
- The pair looks set to violate the bullish higher low pattern with a move below 0.6899.
AUD/USD is closing on 0.6899 – a bullish higher low created on May 30 – having dived out of an ascending trendline on Wednesday.
The currency pair is currently trading at 0.6912, representing a 0.20% drop on the day.
The pair closed at 0.6928 on Wednesday, confirming a downside break of the trendline trending higher from May 23 and May 31 lows.
The violation of the rising trendline is preceded by rejection at the 50-day moving average and is accompanied by a bearish crossover of the 5- and 10-day moving averages (MAs).
Add to that, risk aversion in equities and an uptick in Australia’s underemployment rate in May, and the spot looks set for a drop below 0.6899. That would further bolster the bearish setup and allow retest of the recent low of 0.6865.