AUD/USD Price Analysis: Bears move in to test bull's commitments at the trendline
- AUD/USD bears move in for the kill at 0.6850.
- The bears eye the W-formation's neckline and a break of the trendline.
AUD/USD is under pressure from a critical area on the hourly chart and the following illustrates the prospects of a break of the trendline:
The bears could move in during Tokyo as the price meets 0.6850 but there is still room to go on the upside as well. However, the W-formation is a reversion pattern and if the price were to move into the neckline, that could be a significant development as the trend would come undone as per the break of the trendline support.
AUD/USD 15-min chart
For the immediate future, the price has an area of imbalance near 0.6835 that could be mitigated in the coming hours on the 15-min chart.
As illustrated, the price has moved in on the trendline but so far it is holding up.
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.
