AUD/USD Price Analysis: Bulls eye 0.7020, bears target a break of H1 structure, 0.6910
- AUD/USD has the potential for a move-up in the initial balance for the week. 0.70/20 is eyed as key resistance.
- The key areas to the downside are 0.6950 and 0.6910 ahead of 0.6870.
As per last week's end-of-week analysis, AUD/USD Price Analysis: Bulls are trapped, 0.6950 eyed before further downside potential to test below 0.6800, the bulls are testing bearish commitments here at a critical juncture for the week ahead.
AUD/USD prior analysis
We witnessed a move below the rising channel and there was a price imbalance (PI) on the way to 0.6935 with the 38.2% Fibonacci around 0.6950. It was stated that if the bears committed there at a premium, then there would be prospects of a break below support of 0.6905 to open the price imbalance below and a run to 0.6800 and 0.6750 below there.
AUD/USD update
As seen, we got the move up and even a break to 0.6970. This is key.
As seen on the daily chart, the bulls have come up for a move into a critical resistance area.
Zoomed in...
The bears really need to commit at this juncture and take out the dynamic trendline support or face a protracted bullish move for the opening days of this week.
AUD/USD H1 chart
There are a number of key areas outlined above on the 1-hour chart.
The price imbalances (PI) are eyed with the potential for a move-up in the initial balance for the week to mitigate the imbalances and to test the peak formation left behind from Wednesday's highs last week.
The key areas to the downside are 0.6950 and 0.6910 ahead of 0.6870.
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.
