AUDUSD 0.7323: bearish – Ranges near falling wedge lower bounds

AUDUSD slumped to a new 6-year low at .7259 (July 24, 2015) testing the 2.5-month falling wedge lower bounds (as shown on the 240minute chart). Oversold conditions caution for near-term bounces. The immediate resistance zone lies at .7371/.7416/.7448 near the falling trendline from July 6’s .7532 high, which should cap. Below .7259 would resume the weakness towards the .7209 area (the 76.4% retracement of the .6005/1.1079 2008/2011 upswing). However, if AUD bulls mange to reclaim the .7448 area, further gains can be expected towards .7532 near the 2.5-month falling wedge resistance.

Outlook:
Short term: bearish
Long term: bearish