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AUDUSD : Might Continue to Decline Despite Falling Wedge Pattern, Demand for US Dollar Continues to Weigh

AUDUSD : 4 Hour Chart

AUDUSD has recently lost ground against its major counterparts including US dollar. On the 4 hour chart, the pair is experiencing resistance from the falling resistance trend line of a falling wedge which gives a bullish signal and according to which the pair should rise from the resistance trend line. However the gains would be limited as it will again face resistance from .8995. The pair posted some gains yesterday after the upbeat Chinese manufacturing data. China is Australia’s biggest export partner. However the gains were capped as the demand for US dollar continue to weigh on the pair because of the investors expecting an early rate hike. Technically the pair found resistance from the falling trend line of the wedge and declined. We might see some buying around the support trend line of the wedge.

In the long term, trend still seems bearish if it fails to rise above the falling resistance trend line. All moving averages on the chart are signaling downtrend continuation as all are heading downward and moving apart.