- The pair has found a strong support on the H4 chart
- Simple Moving Average has been flat
- Intraday price action has been bullish
- 0.64400 is going to be a level to keep an eye on for intraday traders
AUD/USD: A Massive Support is in Play
The pair made a long bearish move on the H4 chart. Last week before, it had a bounce at 0.63820 twice. It then made a bullish correction. The price came down last week and had another bounce. Simple Moving Average has been flat. It is a sign that the pair have been taking time before making a big decision. A bearish breakout below 0.63820 may make the bear bearish again and drive the price towards the South. On the upside, if the pair makes a strong bullish move and makes a bullish breakout at 0.64900, the buyers may get themselves engaged to go long in the pair and push the price towards the North. The price may find its next resistance around 0.66000.
The Bull is Right at the Fence
The H1 chart shows that the price produced a bullish inside bar at 0.63820 and headed towards the North for three more candles. It then made a bearish correction and headed towards the North again. As of writing, the pair trades around 0.64400. The pair had a strong rejection on its last trading day. Thus, intraday traders are going to keep their eyes on the price action around this level. A bullish breakout at 0.64400 may attract the buyers to push the price towards 0.64900. On the downside, if the price finds its resistance at 0.64400 and produces a strong bearish reversal pattern, the sellers may drive the price towards the South. The price may find its support again at 0.63820. The level of 0.64000 is going to be a significant if the pair gets bearish later today.
The H4 chart looks neutral bearish at the moment. Considering the support, it seems lucrative for the buyers to go long if the pair gets bullish from here. For the sellers, they must wait for a solid breakout at the support. Considering the H1 chart, it looks bullish so far. A breakout at the last trading day’s higher high may make it more bullish. If it does not make a bullish breakout, it will either get choppy or get bearish later today.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn