AUDUSD: Bearish Continuation from broken supportThe current setup is a clean example of a trend continuation play. Price recently broke decisively below a structure zone, this break and retest now flips the narrative, what once was a buy zone is now an opportunity for short entries.
Following the aggressive move down, price now began pulling back into that broken zone. The move appears corrective rather than impulsive, characterized by a slower, more rounded structure typical of pullback leg. This is classic behavior in continuation setups: fast drop, slow retrace, and then potential for the next leg lower.
The projected move targets a retest of the swing low at 0.63800. That level is significant, it's a level where prior demand reacted strongly and now it serves as the next probable magnet for price.
What makes this continuation trade high probability is the sharpness of the prior bearish impulse as it signals intent. The market seems to be in a controlled bearish sequence, where sellers dominate momentum and retracements offer fresh entries for trend followers.
The structure and zone alignment all point in the same direction continuation lower, not reversal.
Let me know in the comments what you think
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