Last week we posted an analysis on the weekly bearish candlestick pattern formed in AUDUSD. The long upper tail of the weekly candlestick combined with the rejection at a key Fibonacci retracement has provided a bearish signal. This week is very important on the medium-term trend for AUDUSD.

Green lines - expected path

AUDUSD has the potential to start a new downward move towards 0.70-0.66 as we explained in our last analysis. The bearish signal from last week's candlestick needs confirmation by a consecutive bearish week. So far price remains under pressure but it is still too early to call it a confirmed signal. We have four more trading sessions ahead. If AUDUSD remains under pressure and forms lower lows, we should expect price to test 0.70 over the coming weeks.