AUD/USD Technical Analysis: bears in control on the 4H chart

Omkar Godbole FXStreet Contributor

The AUD/USD pair is mildly bid in Asia, possibly due to moderate gains in the S&P 500 futures. The technicals on the 4-hour chart, however, indicate that sellers are controlling the market and a drop to 0.71 could be in the offing.

4-hour chart

The bear flag breakdown on Friday opened up downside toward the psychological level of 0.70. The bearish setup is backed by downward sloping key moving averages - 50- and 100-candle MAs have produced a bearish crossover last week. What's more, the relative strength index (RSI) is also biased bearish below 50.00.

The sell-off to levels below 0.71 could happen this week if the Fed retains hawkish bias, squashing expectations of 2019 rate hike pause.

Technically speaking, the bearish setup would be invalidated above the Dec. 13 high of 0.7247 (recent lower high).

Trend: Bearish

AUD/USD

Overview:
    Today Last Price: 0.7178
    Today Daily change: -1.0 pips
    Today Daily change %: -0.0139%
    Today Daily Open: 0.7179
Trends:
    Previous Daily SMA20: 0.7253
    Previous Daily SMA50: 0.7192
    Previous Daily SMA100: 0.7227
    Previous Daily SMA200: 0.7395
Levels:
    Previous Daily High: 0.7231
    Previous Daily Low: 0.7151
    Previous Weekly High: 0.7247
    Previous Weekly Low: 0.7151
    Previous Monthly High: 0.7345
    Previous Monthly Low: 0.7072
    Previous Daily Fibonacci 38.2%: 0.7182
    Previous Daily Fibonacci 61.8%: 0.7201
    Previous Daily Pivot Point S1: 0.7143
    Previous Daily Pivot Point S2: 0.7107
    Previous Daily Pivot Point S3: 0.7063
    Previous Daily Pivot Point R1: 0.7223
    Previous Daily Pivot Point R2: 0.7267
    Previous Daily Pivot Point R3: 0.7303

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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