AUD/USD Price Analysis: Bulls are forced to the edge of the abyss

AUD/USD bears are seeking a significant run to 0.6720 while the bulls need to get above 0.6920 and then 0.7000.
0.6870 is seen as a critical structure guarding the downside.

Ross J Burland FXStreet

As per the prior analysis, AUD/USD Price Analysis: Bears are dominating the bias with eyes on break of 0.6900, the price is under water following the breakout below the hand and shoulder pattern that was identified on Tuesday on the hourly chart:

It was stated that a break below 0.6950 opened the risk of a test of 0.6900 again and from a daily perspective, this could have been the most probable outcome for the days ahead:

AUD/USD update

Zoomed in ...

AUD/USD H1 chart

As illustrated, the price fell and reached towards the prior peak formation near 0.6850

The price is now stalling despite a strong retail Sales number with 90% of the leg work already done in the Asian and European markets.

The risks are now tilted towards a period of consolidation above last week's lows near 0.6850 but a break of resistance and 0.6920 could start to form a bullish consensus on the charts for the days ahead:

With the price now being on the backside of the trend, the bulls could start to accumulate positions here and a move into the shorts could be on the cards.

However, should the bears commit below 0.6920:

There will be probabilities of a much deeper breakout with 0.6720 eyed at the extreme as per the daily chart.

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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