AUD/USD Price Analysis: Bulls run into a wall of resistance, bears eye downside breakout
- AUD/USD bears are in the market but bulls are flexing.
- The bulls need to get over the line, or face seller commitments below trendline resistance.
The Australian dollar fell below 0.65 the figure and is hovering around the worst levels in over six months growing expectations that the US Federal Reserve would raise interest rates further. The Aussie was also weighed by poor China data. This leaves the technical outlook in question as the price remains on the front side of the bearish trend as the following will illustrate.
AUD/USD H4 chart
The price is trying to correct within a broadly bearish environment. So far, 0.6500 is holding as resistance.
AUD/USD H1 charts
The bears could be interested at this juncture given the premium they will collect in selling higher while in the front side of the bearish market.
The W-formation is a compelling feature on the hourly chart. This is a reversion pattern and the price would be expected to come back into the neckline in due course. This area could act as a support and lead to an onward bullish impulse to retest recent highs and resistance. However, a break of the neckline and then the lows will likely lead to a downward continuation in line with the bearish trend.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
