AUD/USD is probably the most-daunting chart out there, particularly if you're bullish on the outlook for global growth and the risk trade.
On Friday it fell to the lowest since July 2020, breaking two major lows and the neckline of a head-and-shoulders pattern. That break targets levels below the bottom of this chart:
Today though, the bulls are making a bit of a stand. AUD/USD is up 25 pips to 0.7011 which looks like a stay of execution on that chart more than a real bounce, at least for now.
There's reason for hope though, especially with the rally in US equities late on Friday and the peace -- at least so far -- in Ukraine. The pair is also oversold by almost any metric so there's some scope for a bounce here.
If not, we're going be talking about a rough patch in the global economy.
