- AUD/USD are moving in and testing the bull's commitments in key weekly support area.
- Bears eye a break towards the 0.6640s while below 0.6670 near term.
AUD/USD is lower on the day, down some 0.57% at the time of writing after falling from a high of 0.6698 to a low of 0.6652. The currency has been better offered following the Reserve Bank of Australia which kept interest rates at 4.10%. Markets, however, expect that September will most likely be the timing for the next rate increase, and this has been reflected in the price over the last weeks.
Meanwhile, from a technical perspective, AUD/USD bulls have moved aside and the bears are taking control into a key support area on the charts as the following multi-time-frame analysis will illustrate
AUD/USD weekly charts
Zoomed in, we can see that the price broke a key 0.6710 resistance to recently form a fresh daily high which has changed the bearish character to bullish after a sweep of stops below the prior 0.6450 channel support. If bulls commit in the area between the 50%, 61.8% and 78.6% ratios, the neckline of the bullish W-formation, then there are firm possibilities of a retest of the trendline resistance in the build-up to higher highs with eyes set on the 0.7150s.
AUD/USD daily chart
However, this current price action is bearish and risks a test of below 0.6640 and then 0.6600. A break there will leave 0.6537 vulnerable and then the swing low in the 0.6450s.
AUD/USD H1 chart
This leaves near-term prospects bearish while below the hourly resistance of the M-formation's neckline and resistance 0.6670 above as follows:
The 0.6640s are vulnerable for a test in the session ahead that guards a run to 0.6620 and in-the-money long positions below the weekly 61.8% Fibonacci ratio as drawn on thew weekly chart above.
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