AUD/USD technical analysis: Approaching key support at 0.6899

• AUD/USD's daily chart is biased toward the bears.
• The pair looks set to violate the bullish higher low pattern with a move below 0.6899.

AUD/USD is closing on 0.6899 – a bullish higher low created on May 30 – having dived out of an ascending trendline on Wednesday.  

The currency pair is currently trading at 0.6912, representing a 0.20% drop on the day.

The pair closed at 0.6928 on Wednesday, confirming a downside break of the trendline trending higher from May 23 and May 31 lows.

The violation of the rising trendline is preceded by rejection at the 50-day moving average and is accompanied by a bearish crossover of the 5- and 10-day moving averages (MAs).

Add to that, risk aversion in equities and an uptick in Australia's underemployment rate in May, and the spot looks set for a drop below 0.6899. That would further bolster the bearish setup and allow retest of the recent low of 0.6865.

Daily chart

Trend: Bearish

Technical levels