AUD/USD Technical Analysis: Bounces on China rate cut talks forming a bear flag on 5-min chart

AUD/USD has recovered 15 pips from the session low of 0.7057, possibly on reports stating that China may cut the reserve requirement ratio in the second quarter. 

The bounce, however, is taking the shape of a bear flag -  a continuation pattern, which usually accelerates the preceding bullish move - on the 5-minute chart. 

A break below 0.7070 would confirm a flag breakdown and open the doors for a break below the session low of 0.7057.  That looks likely, as the futures on the S&P 500 continue to trade in the red despite China rate cut talks. 

5-minute chart

Trend: Bearish