AUD/USD Price Analysis: Upper end of the contracting triangle caps gains

• AUD/USD's failed breakout is a cause of concern for the bulls. 
• A move above the recent high of 0.66 is needed to revive the bullish outlook. 

The AUD/USD pair is currently trading largely unchanged on the day at 0.6530, having faced rejection at 0.6550 during the early Asian trading hours. 

The turn lower from 0.6550 marks bull failure at the trendline connecting April 30 and May 11 highs. That trendline is the upper end of the contracting triangle created over the last four weeks. 

The triangle was breached to the higher side last Wednesday. However, the bullish breakout was short-lived and the pair fell back inside the triangle on Friday, invalidating the positive outlook. 

A failed breakout is widely considered as a powerful bearish reversal signal. As a result, a deeper decline in the Aussie dollar cannot be ruled out, more so, as the triangle resistance (upper end) proved a tough nut to crack early Monday. 

On the downside, the immediate support is located at 0.7505 (Friday's low), which, if breached, will likely yield a sell-off to 0.6420. That level is currently housing the lower end of the contracting triangle. 

On the higher side, a break above 0.6550 would negate the immediate bearish outlook. That said, a close above 0.66 is needed to restore the bullish trend. 

Daily chart

Trend: Bearish

Technical levels

R3 0.6647
R2 0.6613
R1 0.6575
PP 0.654
S1 0.6502
S2 0.6468
S3 0.643