Market NewsTechnical Analysis

AUD/USD: Confluence Level is in Play

AUD RBA
  • AUD/USD has been choppy on the H4 chart for a while.
  • The SMA 30 has been working as a support.
  • The H1 chart has been bearish trading around Friday’s low.
  • Intraday minor charts have been bearish.
AUD/USD H4 Chart
AUD/USD H4 Chart

AUD/USD-Technical Analysis- H4 Chart

The chart shows that the price has been on consolidation around the simple moving average 30 for a while. The horizontal level 0.65550 has been working as a support as well. The price reacted at the horizontal level several times. Thus, the pair trades around a confluence level considering the support of the SMA 30 and horizontal level. A bullish momentum may create enough volatility and push the price towards the North. The price may find its next resistance around 0.67000.

On the contrary, if the price breaches the level, the sellers may look to go short upon having breakout confirmation followed by a bearish reversal signal. In that case, it may find its next support around 0.64500. It is important to note, that a breakout at a confluence level usually creates good momentum as well.

AUD/USD H1 Chart
AUD/USD H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price has been bearish upon having its second rejection at 0.65800. At the second rejection, it produced a bearish inside bar and headed towards the South with good momentum. It then had a bounce at 0.65550 and made a little bullish correction. Upon finding its resistance, it has been heading towards the South again. Last Friday’s low has been working as a support as of writing. A breakout at the level may attract more sellers to go short in the pair. The price may find its next support around 0.65000.

A bullish momentum may push the price towards the Friday’s high on the other hand.

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

Contact and follow Tareq on Twitter: @tareqfpn

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