The Large AUD/USD Depreciation Is Yet To Begin

AUD/USD tested the breakout of the pennant by rallying to 0.76764 and after that began a depreciation to the zone around 0.7560 – 0.7570.

From that point on there are two scenarios:

There could be a new rally to 0.7750 – 0.7800 which would be a part of the correction to the upside or there could be a renewal of the depreciation toward the next strong support in the zone around 0.7200 – 0.7150.

Those signals are forming on the monthly time frame and their development could take a few weeks to a few months. The current move north is corrective – that much is almost certain. The large depreciation is impending and it should lead the AUD to a new historical low in the zone around 0.6550.