AUD/USD: Bear Finds Several Resistances

• AUD/USD made a strong bullish correction on the H4 chart.
• The SMA 30 has been working as a resistance.
• The pair seems to have found a confluence resistance.
• The H1 chart looks good for the sellers.

AUD/USD-Technical Analysis- H4 chart

The chart shows that the price made a long bearish move before producing a pin bar at 0.66800. The chart then produced a bullish engulfing candle with a long upper wick. The level of 0.67500 seems to be working as a horizontal resistance, where the price had a rejection earlier as well. The sellers may wait for the chart to produce a bearish reversal signal to go short in the pair from the confluence zone of the SMA and horizontal resistance. It may create good bearish momentum and drive the price towards the South. The price may find its next support around 0.65500.

On the contrary, if the price breaches the SMA 30, the buyers may wait for the price to confirm the breakout and produce a bullish reversal signal to go long in the pair.

Price Action Analysis- H1 Chart

The chart shows that the price had its second rejection at 0.67350. At the second bounce, it produced a bearish engulfing candle and breached the neckline. It is a strong sign for the sellers to go short in the pair and drive it towards the South. It seems that the price may find its support around 0.66400. Notably, a bearish trend line is evident. The trend line may play a vital role determining the pair’s trend for a while.

On the upside, it does not look good for the buyers. It may head towards the North, but in terms of lucrative risk-reward, the buyers may have to struggle finding good entries based on this chart.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn