Market NewsTechnical Analysis

AUD/USD:  Bearish Flag is in Play; Keep an Eye on Fib Ratio

  • AUD/USD trades within a bearish flag
  • Simple Moving Average 30 has been bullish neutral
  • The H1 chart looks bearish
AUD/USD H4 Chart
AUD/USD H4 Chart

AUD/USD- Technical Analysis-H4 Chart

The pair after being bearish on the H4 chart for some weeks has been gradually going upwards. The price seems to get caught within an equidistant channel. Thus, traders may consider it as a bearish flag. Simple Moving Average 30 has been heading towards the Northward. However, the way it has been moving, it suggests that the price needs to make a breakout to gather momentum. A bullish breakout at channel’s resistance may push the price towards the North. It may find its next resistance around 0.66000.

On the downside, a bearish breakout at the channel’s support may drive the price towards the South. It may find its support around 0.62700.

AUD/USD H1 Chart
AUD/USD H1 Chart

Price Action Analysis-H1 Chart

The H1 chart shows that the price found its resistance around 0.62230 and made a strong bearish move on the H1 chart. By producing three consecutive bearish candles, it had a bounce at 0.64400. The price has been heading towards the upside to make a bullish correction. The sellers may keep their eyes on the Fibonacchi ration levels to make trading decisions. The level of 0.64900 (38% Fibonacci level) may play a significant role to determine its next move on the H1 chart. A bearish reversal pattern around that level may attract the sellers to go short and drive the price towards the South. The price may find its next resistance around 0.64200.

The H4 chart has been searching for its support. The price still has some space to travel towards the South to find its support at the channel’s support. On the other hand, the H1 chart seems to be making a bullish correction. Thus, traders are to be very watchful here.

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

Contact and follow Tareq on Twitter: @tareqfpn

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Our Newsletter

Subscribe to ForexPropNews Trading Newsletters

Receive the best-curated content by our editors for the week ahead.

Mini Charts

Related Articles

Profit-Taking and Tech Sector Weakness Drive Down Asia-Pacific Markets

Asia-Pacific markets declined on Friday, reflecting Wall Street’s tech stock sell-off. Japan’s...

Asia-Pacific Markets Plunge on Chip Stock Declines: Market Watch

Asia-Pacific markets plummeted on chip stock declines, reflecting global economic uncertainties and...

Forex Focus: Dollar Strength and Market Movements in Asia

U.S. retail sales in June held steady at $704.3B, buoyed by non-store...

Asian Markets React to Powell’s Dovish Remarks with Mixed Results

Asian markets reacted mixed after Powell's dovish comments, with Hong Kong's Hang...

Featured educational content

EXPLORE MORE

Featured educational content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

Video: How I Re-Programmed My Mind to be a Consistent Trader (Thanks to The Wolf of Wall Street)

How I Re-Programmed My Mind to be a Killer Trader (Thanks to The Wolf of Wall Street)

Video: This Invisible Trading Indicator Tells you What Day Trade (Not Just Price)

This Invisible Trading Indicator Tells you WHEN to Trade (Not Just Where)

Technical Analysis: Chart Patterns and Indicators for Profitable Investments

Navigate stocks with confidence using chart patterns like Head and Shoulders, indicators such as MACD, and tools like trendlines. Master technical analysis for...

Latest News

Profit-Taking and Tech Sector Weakness Drive Down Asia-Pacific Markets
Market News

Profit-Taking and Tech Sector Weakness Drive Down Asia-Pacific Markets

Asia-Pacific markets declined on Friday, reflecting Wall Street’s tech stock sell-off. Japan’s inflation remained steady, and chip stocks showed resilience.

Asia-Pacific Markets Plunge on Chip Stock Declines: Market Watch
Market News

Asia-Pacific Markets Plunge on Chip Stock Declines: Market Watch

Asia-Pacific markets plummeted on chip stock declines, reflecting global economic uncertainties and geopolitical tensions, impacting regional indices sharply.

Copyright © 2023 Forex Prop News. All Rights Reserved.