AUD/USD Price Analysis: Bears taking charge and testing critical support

AUD/USD is breaking into key support and the focus is on 0.7150.
Bears will be looking for a significant breakout below trendline support.

Ross J Burland FXStreet

As per the prior analysis, AUD/USD Price Analysis: Consolidation in play, 0.7150 eyed while below 0.7230, daily support is key, the bears took over and now the bullish outlook based on the inverse head & shoulders is invalidated.

AUD/USD prior analysis

AUD/USD Price Analysis: Inverse H&S in the making from 0.7200 support

The above was an article that had identified the prospects of a bullish inverse head & shoulders taking shape on the daily chart.

AUD/USD was on the verge of either a break to the upside of a run below critical daily support, as follows:

However, due to the surge in US yields and the greenback following suit, the bears have taken over and broken a critical daily support structure.

AUD/USD inverse H&S invalidated

In turn, this has invalidated the bullish inverse head & shoulders pattern leaves 0.7150 exposed for the session ahead. 0.7150 could be the last stop before a significant sell-off below daily trendline support:

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.

GBP/USD surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD picks up extra pace north of 1.1400

EUR/USD extends its recovery past 1.1400 the figure as the NA session draws to a close on Monday. Indeed, the pair advances for the third straight day amid the persistent offered bias in the US Dollar. Meanwhile, market participants keep gearing up for the ECB Forum in Sintra and the release of critical US labour market data.

Gold struggles to attract investors

Gold remains under marked selling pressure, holding on just above the key $4,000 mark per troy ounce at the beginning of the week. The precious metal reverses two daily advances in a row as renewed effervescence in the Middle East revive inflation concerns and bolster Fed rate hike expectations.

Strategy unveils plan allowing Bitcoin sales to fund stock buybacks, dividends and reserves

Strategy (MSTR) has unveiled a Digital Credit Framework to strengthen the company’s financial standing. Under the new framework, the world’s largest corporate holder of Bitcoin (BTC) will pivot from its previous accumulation strategy, opting to sell BTC in order to boost liquidity, fund dividend payments, execute stock buybacks, and strengthen cash reserves.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.