AUD/USD Price Analysis: Bears are on the look out for an opportunity in the deceleration of the bullish daily correction

AUD/USD bears are stalling at a critical daily resistance block.
The bears are monitoring for bearish structures on lower time frames.

Ross J Burland FXStreet

From a daily perspective, the AUD/USD has reached a potential resistance bloc which is guarding the M-formation's neckline near 0.7170. The price on Wednesday is forming a Bearish Doji.

AUD/USD daily chart

The bears will be looking for confirmation that this bullish correction may have ended from Thursday's candle's close. An ideal and textbook outcome would be a bearish engulfing candle such as this:

Bears will be monitoring price action from a 4-hour time frame in hope of a bearish structure over the coming days from which to engage and target a daily downside extension as illustrated above.

AUD/USD H4 chart

The moving averages are showing the price remains in bullish territory but bears wl be on the lookout for a bearish crossover with the 10 moving below the 21 EMA in the sessions ahead. In doing so, a newly formed resistance structure below 0.7120 could be the basis for the downside bias if it holds on subsequent bullish retests.

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.

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