AUD/USD: The Bear Finds its Resistance Again

• AUD/USD is about to make a significant bearish breakout on the H4 chart.
• The H4 chart may head towards the downside by producing an ABC pattern.
• The H1 chart looks bearish.
• Intraday minor charts may make some bullish corrections.

AUD/USD- Technical Analysis-H4 Chart

The H4 chart shows that the price made a strong bearish move upon finding its resistance around 0.65000. It breached the Simple Moving Average 30 and traded below it for several candles. It then produced a bullish engulfing candle and made a bullish correction. The price breached the SMA 30, which could have been a significant bullish breakout. However, the price did not produce any strong bullish reversal at the breakout level. Thus, the buyers were not interested to go long in the pair. Instead, the pair has been bearish. As of writing, the pair trades below the SMA again. Thus, the sellers may look to go short in the pair and drive it towards the South.

The price may find its next support around 0.63865. On the upside, if the price goes back above the SMA 30 and confirms the breakout, the buyers may push the price towards the North. In that case, the price would find its resistance around 0.64665.

Price Action Analysis- H1 Chart

The chart shows that the price headed towards the upside by obeying a bullish trend line. It then had a rejection and made a bearish breakout at the trend line. As expected, the sellers waited for the price to confirm the breakout followed by a bearish reversal candle to be produced to go short in the pair. The price may continue its bearish move and find its next support around 0.64000.

A breakout below that level may drive the price towards the last swing low at 0.63865. The pair may consolidate within 0.64000-0.63865 before finding it route on the H1 chart.

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

Contact and follow Tareq on Twitter: @tareqfpn