AUD/USD Price Analysis: Critical levels in view, will bulls throw in the towel?

AUD/USD in the hands of the bears while below the critical structure.
Bears remain committed and a test of the daily support structure could be on the cards.

0.7005 remains the line in the sand according to the daily chart and the following prior analysis:

AUD/USD Price Analysis: Bounded by support and resistance, watch for a breakout

The chart above was the analysis given at the start of the week forecasting the current price action of today:

The initial drop that has been eclipsed in the above chart represents a buying opportunity if the bears take in their profits.

However, as illustrated in the above chart, there is no way of telling if the bulls are about to throw in the towel, so the 4-hour time frame is an appropriate place to monitor for price action and change of environment.

4-hour chart

As it stands though, within a bearish environment, (price below 21-moving average, MACD below zero), the price has moved up to test the old support now turned resistance level.

If this structure holds, then a break of the daily support at 0.7005 makes a plausible case for a downside continuation.

In such a scenario, it would be expected that the market would complete a move to 0.6950 ahead of a 38.2% Fibonacci retracement of the monthly bullish impulse around 0.6680.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.