AUD/USD: Traders to Wait to Find Its Next Direction

• AUD/USD is traded within a horizontal support and the SMA 30’s resistance.
• The H1 chart looks sluggish, but has some space to travel towards the downside.
• Intraday minor charts look slightly bearish.

AUD/USD- Technical Analysis-H4 Chart

The chart shows that the price had multiple bounces at 0.63000. At the last bounce, it produced a morning star and headed towards the North. It breached the simple moving average 30’s resistance as well. However, the chart did not confirm the breakout. It rather came back down and headed towards the last swing low. As of writing, the pair trades around the horizontal support. Traders must wait for the price either to make a bullish breakout at the SMA 30’s resistance or at the horizontal support. A breakout followed by confirmation and reversal pattern at the breakout level may show the next direction of the pair.

A bullish breakout may push the price towards 0.64000. On the other hand, if the price breaches the horizontal support, the price may find its support around 0.61700.

Price Action Analysis- H1 Chart

The chart shows that the price gets trapped within a triangle. The pair seems to have found a horizontal resistance. It may head towards the support now. Thus, intraday minor charts’ sellers may keep their eyes on the pair to go short. On the contrary, minor charts’ buyers may wait for the price to produce a bullish reversal pattern at the support go long up to the trend line’s resistance.

Traders may not be that keen to make trading decision based on the H1 chart until it makes a breakout at the trendline’s resistance or at the horizontal support.

It means traders are to be very watchful and patient before making any trading decision based on the H4 and the H1 chart.

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

Contact and follow Tareq on Twitter: @tareqfpn