AUD/USD Descending Triangle Setup – Support Retest in Focus

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The AUD/USD pair is currently forming a descending triangle pattern, a common bearish continuation structure where price makes lower highs while holding above a horizontal or slightly rising support level. This setup indicates increasing selling pressure at lower resistance levels (highlighted with red arrows and trendlines), while buyers are consistently defending the green support zone around 0.6475–0.6485.

So far, the price has been rejected multiple times from the descending resistance line, confirming seller dominance. At the same time, it has found buying interest at support, forming a tight range where a breakout or breakdown is likely to occur soon.

🔽 Current Price Action & Outlook
The latest price structure shows a potential lower high forming, suggesting another move downward toward support.

If the pair revisits the support zone once again, it will be a critical retest, and the market could either:

Bounce from support, continuing the sideways structure within the triangle, or

Break down below the green trendline, triggering a bearish continuation.

Until the support breaks, the market remains range-bound inside the triangle, offering short-term trade setups between support and resistance.

🎯 Strategy Notes
Short-Term Idea: Sell near resistance (~0.6525–0.6535), buy near support (~0.6475–0.6485)

Breakout Traders: Wait for a confirmed breakout of either boundary with volume before entering

Invalidation: A strong breakout above the red descending trendline may invalidate the bearish structure

This is a neutral-to-bearish setup with a potential for breakout in either direction. Patience is key for waiting on confirmation.

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