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