Apart from Monday’s session, the AUDUSD lost ground every day last week. It started with Tuesday’s bearish engulfing day and ended with a slight loss on Friday after a test of 0.7608 support.
A quick study of the weekly chart shows what appears to be a twelve-month wedge pattern. The structure began developing after the 2,600 pip landslide that took place between June 2014 and January 2016.
Given that the wedge has formed after a steep downtrend, it could very well be a bearish continuation pattern. But like every terminal structure, we won’t have a definitive answer until the market breaks support or resistance.
For the week ahead, sellers need a daily close below 0.7608 to further last week’s decline. Such a break would expose the next level of support at 0.7500. Alternatively, a bounce from current levels would likely encounter selling pressure near 0.7725.