AUD/USD May Begin A Corrective Rally Before It Tests The Support At 0.7240

That is the logical conclusion if we examine the D1 time frame.

During its move to the downside the pair has formed a bearish channel and has reached its trend lines (in red) four time times, forming five waves on the way down from 0.81356 to 0.74121.

The last wave of the depreciation is from 0.78125 to 0.74121, which is exactly 400 pips without a correction.

What is more, on the H4 time frame there is a RSI divergence, and if the pair reaches its limit it should reach 0.7650 – 0.7670. That would mean it would test the breakout of the pennant (in blue).
After a correction we can expect a depreciation toward the next strong support at 0.7240.

In my opinion, the rally will be obligatory, but it is still a good idea to wait for a confirmation signal before we open any long positions.