AUDUSD Signals Potential Intraday downside moveHello Traders,
Here is my intraday technical outlook of AUDUSD.
Long term
On the H4 time frame, a big inverted head and shoulders pattern is seen, indicating a potential long term bullishness.
Short term
AUDUSD has displayed interesting price action, indicating potential bearish momentum in the near term. Here's a breakdown of the short term analysis:
1. Intraday Consolidation and Sign of Weakness : AUDUSD experienced a period of consolidation around 0.68956 -0.68705, suggesting indecision in the market. However, signs of weakness emerged during this phase, indicating that sellers might have been gaining control.
2. Rally Without Strength and Failed Resistance Test : Despite the consolidation, the pair attempted to rally to the upside. However, the rally lacked conviction and failed to reach the resistance zone, signaling a lack of buying power. As a result, sellers took the opportunity to overpower the buyers, leading to the establishment of a crucial supply level.
3. Break of Support Zone : The bears succeeded in breaking below the significant support zone located around 0.68496. This breakout is a bearish signal, suggesting that sellers are gaining control of the market. Considering the analysis, the outlook for AUDUSD leans towards a potential further decline to the 0.68040.
Traders should keep a close eye on price action, especially during the retest of the broken support. If the retest confirms the newfound resistance, it would add more credibility to the bearish scenario.
Cheers and happy trading.
