AUD/USD Daily Analysis – Tues, October 10

AUD/USD stays below a bearish trend line on the 4-hour chart and remains in the downtrend from 0.8102. As long as the price is below the trend line, the bounce from 0.7732 could be treated as consolidation of the downtrend.

Further decline could be expected after the consolidation and the next target would be at the resistance-turned-support trend line on the weekly chart – now at 0.7700. On the upside, a clear break above the trend line could bring the price back to test 0.7875 resistance. Only a break above this level could indicate that the downtrend had completed at 0.7732 already, then the following correction rebound could take price towards 0.7986 resistance.