AUD/USD Technical Analysis: Falling wedge breakout confirmed, but risk-off may play spoil sport

AUD/USD closed yesterday at 0.7112, confirming a falling wedge breakout on the daily chart. 

While the bear-to-bull trend change has opened the doors to 0.72, the gains may remain elusive if the treasury yield curve inversion and the resulting recession fears continue to keep risk assets on the defensive. 

That said, the breakout is backed by the 14-day relative strength index's (RSIs) bullish break above 50.00. So, the probability of the AUD rising to 0.72 looks strong. The bullish case, however, would weak if potential risk-off sends the pair below 0.7065 (Monday's low). 

Daily chart

Trend: Cautiously bullish