Technical Analysis: AUDUSD prints Head-and-Shoulders on H4
AUDUSD refreshes three-week low while declining to 0.7040 on Tuesday. The pair forms a Head-and-Shoulders bearish chart pattern on the four-hour play (H4) with the quote currently testing the neckline. Considering the oversold RSI conditions, the AUDUSD prices should bounce off towards Monday's top near 0.7100. Though, any further upside will derail the bearish pattern and can push the bulls towards a 200-bar SMA level of 0.7190. Also acting as the key upside barrier is a falling trend line from September 02, at 0.7205 now.
If at all the AUDUSD bears disrespect oversold RSI, while paying attention to the MACD, the September month's bottom close to the 0.7000 psychological magnet will gain the market's attention. It should, however, be noted that the pair's further weakness below 0.7000 will not hesitate to challenge the mid-June low near 0.6775. However, there are multiple rests around 0.6960 and 0.6800 while stretching the fall from 0.7000 towards 0.6775.