AUD/USD technical analysis: Down 0.16%, corrective bounce over?

• AUD/USD' 4-hour line chart is reporting a bear flag breakdown. 
• The Aussie dollar risks falling back to recent lows below 0.70.

AUD/USD is currently trading at 0.7044, representing a 0.16% drop on the day.

The bounce from the recent lows below 0.70 has possibly ended, as the pair has dived out of the bear flag, a bearish continuation pattern, having faced rejection at key descending trendline on Monday, as seen in the chart below.

Hourly chart

A bear flag usually accelerated the preceding bearish move. As a result, the pair risks falling back to the low of 0.6988 (April 25 low). A close lower would open the doors to 0.6910 (bear flag breakdown target as per the measured move method).

The corrective bounce would resume if and when the descending trendline resistance, currently at 0.7062 is breached.

Trend: Bearish

Pivot points