AUD/USD Price Analysis: Bears in control, price rejected by key resistance


  • AUD/USD is in the hands of the bears as it starts to correct the monthly bullish impulse. 
  • The price has been rejected by the daily M-formation's neckline and resistance.

AUD/USD is melting to the downside across the time frames in what is expected to be a 50% mean reversion of the monthly bullish impulse. 

The following illustrates the downside in motion across the monthly, weekly and daily charts. The 4-hour chart is well entrenched in bearish territory having been rejected at the daily M-formation's neckline. 

Monthly chart

The market has topped mid-month. A downside continuation would be expected to make its way to the prior resistance in a 50% mean reversion. 

Weekly chart

The price is correcting and is on course towards the prior resistance structure that now would be expected to act as support and slow down the bearish momentum. 

Daily chart

The price has been rejected at the M-formation's resistance.

4-hour chart

With the price well entrenched in bearish territory according to the indicators, the market would be expected to continue to melt in accordance with the long-term bearish corrective bias. 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD recovers beyond 1.2050 amid easing dollar’s demand

Easing Treasury yields and falling equities pushed the dollar lower heading into London fix. EUR/USD trades at daily highs around 1.2070 despite unimpressive EU data.

EUR/USD News

GBP/USD up over 100 pips after reaching a fresh two-week low

The pound trades around 1.3950 against the greenback, as demand for the latter receded. The focus is now on finance minister Sunak’s budget on Wednesday.

GBP/USD News

XAU/USD eyeing break below $1700 if this week’s US data beats

Spot gold prices are looking vulnerable in the $1720s after printing fresh multi-month lows during Tuesday Asia Pacific trade. Traders may look for a break below the $1700 level if strong US data adds to “over-heating” concerns.

Gold News

Ripple nears 30% spike while crypto bull run takes a breather

Bitcoin's uptrend is still intact despite the technical breakout stalling at $50,000. Ethereum faces an uphill task at the 38.2% Fibonacci level ahead of a potential spike to $1,700. Ripple is flirting with $0.44, while bulls look forward to a 30% rally to $0.575.

Read more

US Dollar Index: Next on the upside comes in 91.60

DXY pushes higher and clinches new 4-week peaks near 91.40. This area is coincident with the 100-day SMA (91.29).

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures