AUD/USD Price Analysis: Bears in control as bulls tire at monthly resistance
|- AUD/USD bears taking back the control and eye weekly old resistance.
- There is a period of consolidation expected around and below current short term resistance.
AUD/USD is overstretched according to the following analysis that illustrates where the next downside opportunity may come.
Monthly
The monthly chart shows that the price is testing a deep resistance area.
Failures here open risk to a significant move to the downside to test prior resistance, at least.
Weekly
The weekly W-formation is a bearish pattern and the price would be expected to reach at least the neckline.
Daily
The daily chart shows that the price is already testing an old resistance for which failures below it will usually equate to an extension to the weekly and monthly area of old resistance.
A 61.8% Fibonacci of the latest bullish impulse has a confluence with old weekly highs.
4-hour chart
The price is testing a critical support zone that may now act as resistance.
1-hour chart
The hourly chart is testing the 38.2% Fibonacci resistance and a downside extension of the bearish impulse would be in anticipation following failures at this juncture.
15-min chart
The 15-min chart's conditions are bearish and it may only be a matter of a series of further failures over the coming sessions and month-end at the resistance for the market to melt.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.