AUD/USD has been consolidating since falling to a new low on the year last week at 0.8540. Since then, it has rallied to 0.8764 in a rising channel, or what can be interpreted as a flag pattern.AUD/USD 4H Chart 11/14(click to enlarge) The 4H chart shows the AUD/USD trying to break below the aforementioned flag pattern. This attempt followed a better than expected retail sales report from the US, though we can see that price was already retreating before the data point release.Now we seem to be getting some support at 0.8650, the 50-period SMA, and the cracked rising speedline from last week. A clear break below 0.8650 will be needed to complete the bearish continuation signal, which would open up the 0.86 then 0.8540 lows with risk of falling lower since the prevailing downtrend is still in play.A rally above 0.8725 might keep the AUD/USD away from continuing the downtrend, and signal another leg of bullish correction or extended period of consolidation next week.