In today’s technical analysis, let’s focus on AUD/USD, which ended Friday on a weak note and is starting the new week under clear pressure.
The key structure on the chart is a symmetric triangle marked with red lines. This pattern had been containing price action for some time, but Monday brings a breakout to the downside. From a technical perspective, that breakout generates a sell signal.
The bearish case is strengthened by the fact that price is also breaking below the green horizontal support, a level that was relevant throughout the previous week. So we now have two bearish developments at the same time: a downside breakout from the triangle and a loss of horizontal support.
As long as the price remains below both the lower boundary of the triangle and the green support zone, sentiment stays negative. This combination clearly favors the sellers and supports a short setup.
The alternative scenario would require price to recover and move back inside the triangle. That would invalidate the current breakdown and generate a buy signal. For now, however, the probability of such a reversal looks limited, as momentum is currently on the bearish side.