Market NewsTechnical Analysis

AUD/USD: Choppy Price Action within a Channel

AUD/USD US Jobless Claims
  • AUD/USD trades within a range for a while on the H4 chart.
  • The chart has produced a bullish engulfing candle at the range’s support.
  • The H1 chart looks bullish upon finding its support.
  • Intraday minor charts have been bullish in the Tokyo Session.
AUD/USD H4 Chart
AUD/USD H4 Chart

AUD/USD-Technical Analysis- H4 Chart

The chart shows that the price gets caught within a channel last week. The simple moving average has been flat, which indicates that traders are confused to find its direction. A breakout above the channel’s resistance may push the price towards the North. The price may find its next resistance around 0.66800.

On the downside, if the price breaches the channel’s support, the sellers may go short in the pair and drive it towards the South. The level of 0.65250 may play a vital role and hold the price as a support. It means the sellers do not have that much open space to keep adding entries. However, a breakout below that level may make the pair very bearish and head towards the downside with good momentum.

AUD/USD H1 Chart
AUD/USD H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price has found its support at 0.65700. It produced a spinning top followed by a bullish engulfing candle. Then, the price headed towards the North in a hurry. As of writing, the current candle has been bearish. Since the chart offers some space for the price to travel towards the upside, the buyers may keep their eyes on the pair to go get a bullish reversal candle to go long and push it towards the level of 0.66100.

On the contrary, if the price breaches the support, the sellers may drive it towards the South further. In that case, it may find its support around 0.65250.

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

Contact and follow Tareq on Twitter: @tareqfpn

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