AUD/USD: Enough Space for the Bear to Travel towards the South

• AUD/USD has been bearish on the H4 chart.
• The pair has been obeying a bearish trend line on the H4 chart.
• The H1 chart has been on consolidation looking for its resistance.
• Intraday minor charts have been choppy.

AUD/USD-Technical Analysis- H4 chart

The H4 chart shows that the price has been down trending by obeying a bearish trend line. At the last rejection, it produced a bearish engulfing candle. However, it did not continue its move towards the South. The pair has been on consolidation for a while. A bearish breakout at the consolidation support may drive the price towards the downside with bearish momentum. The price may find its support around 0.62800.

On the other hand, if the price makes a bullish breakout at the trend line, it may get bullish for a while. The price may not make a strong bullish move since the simple moving average 30 has been working as its resistance as well.

Price Action Analysis- H1 Chart

The chart shows that the price has been on consolidation around 0.63660. The sellers may keep their eyes on the price action around this level closely.  A bearish reversal candle followed by a price breach at 0.63400 may make the pair bearish. The price may find its support around 0.63150.

On the other hand, if the price makes a bullish breakout at 0.63660, the buyers may look to go long in the pair upon having a bullish reversal pattern at the breakout area. The price in that case may find its resistance around 0.64000.

Considering both charts, it seems that the bear has an upper hand. Upon finding its resistance and price breach at the last week’s low may make it move towards the downside and land at the last swing low of the last bullish wave. It means the price has enough space to travel towards the South as well.

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

Contact and follow Tareq on Twitter: @tareqfpn