AUD/USD Price Analysis: Bears could be about to pounce

AUD/USD´s bearish engulfment on the last 4-hour candle is eyed.
Bears eye a break of 0.6661 with 0.6625 seen below there guarding the 0.6550s.

Ross J Burland FXStreet

The Australian dollar traded around 30 pips on either side of around 0.67 the figure vs. the greenback on Friday and ended the month little changed, in a period marked by constantly shifting outlooks for interest rates and the banking sector globally.

Meanwhile, easing domestic inflationary pressures leave a question mark over the Reserve Bank of Australia´s interest rate meeting this week. The RBA stated in its latest minutes it would reconsider the case for a pause at the April fixing to reassess the economic outlook.

Looking at the technicals, there is also a downside bias as follows:

AUD/USD weekly chart

The bearish pennant is a compelling feature across the weekly and daily time frames.

AUD/USD daily chart

Failures below 0.6720 keep the bearish bias in place.

AUD/USD H4 chart

The bearish engulfment, BE, on the last 4-hour candle could be the catalyst for a firm break of structure for the opening sessions near 0.6661 with 0.6625 eyed below there guarding the 0.6550s.

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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