- The pair made a bearish breakout at the lowest low
- Simple Moving Average 30 works as resistance
- Price made a strong bearish move in the H1 chart
- A bearish reversal pattern at the value area may attract more sellers to go short
AUD/USD Continues its Bearish Move
The pair has been bearish in major charts for some weeks. Last week, the price seemed to have found its support at 0.65000. It made a bullish move and closed above Simple Moving Average 30. However, the price came back below and continued its bearish move by making Simple Moving Average 30 as its resistance again. On its way, it made a bearish breakout at 0.65000. Thus, the sellers may wait for the price to consolidate and produce a bearish reversal pattern to go short in the pair. The breakout level may work as resistance. If the price consolidates for a while and SMA 30 produces a confluence level with the horizontal resistance, the Bear may make a strong bearish move and find its next support around 0.63500. On the upside, if the price makes a bullish breakout at 0.65000, the price may extend its bullish correction. However, it does not seem that the Bull shows its strength in the pair soon.
A Bullish Correction is in Play
The pair made a strong bearish move in the H1 chart in the Tokyo session. It has been heading towards the North to find its resistance. The level of 0.68875 may work as a flipped level of resistance and drive the price towards the South. If the chart produces a strong bearish reversal pattern at the flipped resistance or by having consolidation at the value area, the sellers may go short and drive the price towards the South. The pair may find its next support around 0.64250. However, the way the price has been heading towards the North, it seems that intraday minor traders are keen to push the price towards the upside further. Thus, the H1 traders may have to wait a bit longer than they would like.
Considering both charts, it is very explicit that the Bear holds the key. It may extend its move towards the downside and check out last October’s lowest low. It is a long way to go but very much on the card.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn