AUD/USD: Is the Bull’s Correction over?

• AUD/USD had a bullish correction and found its resistance in the H4 chart
• A bearish engulfing candle at SMA 30 may drive the pair towards the South
• H1 chart shows the pair is traded around a confluence level
• A confluence level on the H1 chart may play a significant role

AUD/USD –H4 Chart

AUD/USD-H4 is Traded around Resistance

AUD/USD has been bearish in the H4 chart for the last three weeks. The pair made a long bearish move and found its support at 0.65150 last week. It has been having a bullish correction since then. The chart shows that the pair had a strong rejection at Simple Moving Average 30. It produced a bearish engulfing candle already, which indicates that the pair may get bearish again. If the pair makes a bearish move, it may find its support at 0.65150. A bearish breakout below that level may make the pair very bearish and drive it towards the level of 0.64600. However, if the price makes a bullish breakout at the Simple Moving Average 30, the Bull may take over and push the price towards the upside. In case of a bullish breakout, the price may find its next resistance 0.66250.

AUD/USD-H1 Chart

The H1 Offers a Confluence Level

The H1 chart shows that the pair has been heading towards the North with a moderate bullish momentum. A bullish trend line is in play, where the price had a bounce earlier and made a new higher high. The price is approaching at the trend line’s support again where the buyers may wait to go long upon getting a strong bullish reversal candle. As far as the H1 chart is concerned, the price had a bounce at the horizontal level of support at 0.65625. It means the pair may have found its support at a confluence level. If the confluence level produces a bullish reversal candle, the Bull may make a strong move and find its next resistance around 0.66300. On the contrary, if the price makes a bearish breakout at the confluence level, the Bear is going to take over and drive the price towards the last swing low.

Considering these two charts, it seems that the pair is worth keeping an eye at. Since the H1 chart offers a confluence level, it means the Bull may have an upper hand here. Let us see how it ends.

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

Contact and follow Tareq on Twitter: @tareqfpn