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  • AUD/USD is currently reporting marginal gains at 0.7020, having printed levels near the key support at  0.7003 (March 8 low) earlier today.  
  • The pair, however, looks set for a drop below 0.70 if we take  into account the symmetrical triangle breakdown – a bearish continuation pattern – seen in the daily line chart.
  • Notably, the bearish technical setup is backed by the narrowing of the spread between the two-year Australian and US government bond yields to the lowest since September 1997.  
  • Hence, corrective bounce, if any, could be short-lived.  

Daily line chart

Trend: Bearish