Market NewsTechnical Analysis

AUD/USD: The Bear Halts at Support; Does the Bull Take Over?

  • A strong bearish trend on the H4 chart
  • The pair trades around a significant support
  • The H1 chart trades within a Bearish Pennant
  • Traders are to wait for a breakout to find its intraday direction
AUD/USD H4 Chart
AUD/USD H4 Chart

AUD/USD Trades around Weekly Support

The pair has been down-trending on the H4 chart for the last five weeks. It made a strong bearish move last week. However, the pair found its support at 0.63800 and had its second bounce at the level as well. As of writing, the price trades around the level. Simple Moving Average 30 has been working as resistance. A bearish breakout may attract the sellers again to go short in the pair. However, it is the weekly support. Thus, the pair may need some time to consolidate and make a bearish breakout at the level. The price may find its next support around 0.62700.

On the upside, if the price makes a bullish breakout at Simple Moving Average 30, the pair may change its direction and get bullish for a while.

AUD/USD H1 Chart
AUD/USD H1 Chart

The H1 Chart Trades within a Pennant

After being bearish for a long time, the price made a long bullish correction last week on the H1 chart. The price had a rejection at a flipped resistance 0.64500. Then, it gets trapped within a Pennant. A bearish breakout may drive the price towards 0.63600.

On the contrary, if the price makes a bullish breakout at Pennant’s resistance, it may find its next resistance around 0.65200. It means that the Bull has more space to travel on the H1 chart than the Bear. The risk-reward ratio looks very lucrative to attract the buyers to go long.

Considering the H4 chart, the pair looks Bearish-Neutral. The H1 chart looks slightly bullish. Since the price trades around weekly support on the H4 chart, the price may make a bullish correction. The bullish correction on the H4 chart could end up producing a strong bullish move in the H1 chart.

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

Contact and follow Tareq on Twitter: @tareqfpn

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Our Newsletter

Subscribe to ForexPropNews Trading Newsletters

Receive the best-curated content by our editors for the week ahead.

Mini Charts

Related Articles

Profit-Taking and Tech Sector Weakness Drive Down Asia-Pacific Markets

Asia-Pacific markets declined on Friday, reflecting Wall Street’s tech stock sell-off. Japan’s...

Asia-Pacific Markets Plunge on Chip Stock Declines: Market Watch

Asia-Pacific markets plummeted on chip stock declines, reflecting global economic uncertainties and...

Forex Focus: Dollar Strength and Market Movements in Asia

U.S. retail sales in June held steady at $704.3B, buoyed by non-store...

Asian Markets React to Powell’s Dovish Remarks with Mixed Results

Asian markets reacted mixed after Powell's dovish comments, with Hong Kong's Hang...

Featured educational content

EXPLORE MORE

Featured educational content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

Video: How I Re-Programmed My Mind to be a Consistent Trader (Thanks to The Wolf of Wall Street)

How I Re-Programmed My Mind to be a Killer Trader (Thanks to The Wolf of Wall Street)

Video: This Invisible Trading Indicator Tells you What Day Trade (Not Just Price)

This Invisible Trading Indicator Tells you WHEN to Trade (Not Just Where)

Technical Analysis: Chart Patterns and Indicators for Profitable Investments

Navigate stocks with confidence using chart patterns like Head and Shoulders, indicators such as MACD, and tools like trendlines. Master technical analysis for...

Latest News

Profit-Taking and Tech Sector Weakness Drive Down Asia-Pacific Markets
Market News

Profit-Taking and Tech Sector Weakness Drive Down Asia-Pacific Markets

Asia-Pacific markets declined on Friday, reflecting Wall Street’s tech stock sell-off. Japan’s inflation remained steady, and chip stocks showed resilience.

Asia-Pacific Markets Plunge on Chip Stock Declines: Market Watch
Market News

Asia-Pacific Markets Plunge on Chip Stock Declines: Market Watch

Asia-Pacific markets plummeted on chip stock declines, reflecting global economic uncertainties and geopolitical tensions, impacting regional indices sharply.

Copyright © 2023 Forex Prop News. All Rights Reserved.