The daily chart shows a compelling M-formation, with the price hovering around 0.7200.
The AUD/USD is in a stall with a bullish closing candle Tuesday which could signal a pause to the bearish breakout beneath the trendline support.
Daily chart AUD/USD
The M-formation is an inverse pattern. If the price reverts back to the neckline at 0.7250, then it would be expected that the M-formation will occur. A downside continuation could occur if this level is held as resistance.
The neckline area is confluent with the 38.2% Fibonacci, and 50% ratio. This adds extra resistance.
