AUD/USD Price Analysis: A break from 0.6950 is on the cards
|- AUD/USD bears lurking at short-term support in the open.
- Eyes on the lower quadrant of the New York session range.
AUD/USD is consolidated in the upper quadrant of the New York range. However, the price is coiling and a breakout in the near term could be imminent on either side of 0.6950.
AUD/USD, the M5 & M15 open
For the open, the price imbalance to the downside between 0.6930 and 0.6914 is compelling. However, there could be a push higher toward the New York highs, especially if the 0.6940 structure does not break. If it does, then this will be the equivalent of a 15-min move from the resistance of the M-formation:
Meanwhile, the following is a top-down analysis outlining the price imbalances that can be watched for mitigation.
AUD/USD monthly chart
There is a case for the downside to mitigate the price imbalances below the market, as illustrated above.
AUD/USD daily chart
The price is testing the M-formation's neckline which could be the last defence before the bears move in.
However, there are price imbalances to the upside and a break of the neckline around 0.6950 opens risk to the upside.
From an hourly perspective, there could be some mitigation to the downside first as follows:
The 15-min chart's M-formation is so far resisting the bulls:
Meanwhile, the US dollar will be key:
If there is more to come from the DXY bears, as the price breaks structure and heads towards the price imbalances and order block below near 103.10, the Aussie can enjoy a spell to the upside. This puts 0.7100 on the map for the week ahead.
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