AUD/USD Price Analysis: Bears ready to pounce while front side of trend

AUD/USD is on the front side of the bear trend, potentially leading to a bearish start to the week.
AUD/USD bears lurking below the Fibo scale.

Ross J Burland FXStreet

As per the prior analysis, AUD/USD Price Analysis: Bears in the market, chipping away into key support, where the focus was on the downside, we have indeed seen a deeper move into support.

AUD/USD prior support

There is an emphasis on the downside for the meanwhile on the lower time frames:

Zoomed in, we could see that AUD/USD had left an M-formation on the 4-hour chart. A correction into the neckline would meet a 38.2% Fibonacci of the prior bearish leg.

Either way, below there, the bias was to the downside for a deeper test into the support area. 0.6725 is an upside resistance that guards a continuation higher subsequent of the bullish breakout.

AUD/USD update

The price action followed the forecasted trajectory as illustrated above.

With the recent break of the structure of 0.6650, there is a bias to the downside still while on the front side of the bear trendline.

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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