Market NewsTechnical Analysis

AUD/USD: The Bear Heads towards the Last Year’s Lowest Low

  • 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 H4 Chart

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.

AUD/USD H1 Chart

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

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Your email address will not be published.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.