AUD/USD: Will the Aussie Fight or Take Flight?Alright y'all, let’s break down this AUD/USD situation, top-down style, so everyone from the rookies to the seasoned pros can catch the vibe.
Starting with the monthly chart, AUD/USD has been riding a rollercoaster. We saw a strong bullish push recently, but it’s hitting that resistance zone around 0.67990, which has been a significant level historically. The price might be finding it hard to bust through without taking a breather first. With the Heikin Ashi candles showing a bit of hesitation, I wouldn’t be surprised if we see some consolidation or a slight pullback before it decides its next big move.
Dropping down to the weekly, we’ve got a similar story. That resistance is holding strong, and the price is starting to pull back, likely testing the support around the 0.67095 level. This is where things get interesting. If we see a bounce off this level, we might get another bullish push towards that 0.67990 area. But if it breaks below, things could get dicey for the bulls, with the next significant support sitting around 0.66780.
Now, looking at the daily and 4-hour charts, the pullback is becoming more evident. The 4-hour chart is showing a descending trend line forming, and the price is riding it down. If you’re looking for a trade setup, watch for a break below that 0.67095 support on the 4-hour. A solid close below could give us a clean sell setup with a target around 0.66780, where we might see some buyers stepping in.
But don’t sleep on the idea of a bounce! If the price respects that support level and starts breaking above the descending trend line on the 4-hour, we could be looking at a reversal back towards 0.67990. Either way, stay sharp and keep an eye on how price reacts at these key levels.
As for my overall bias? I’m leaning bearish short-term unless we see a convincing bounce off support. Keep your risk tight, and let’s see how this one plays out!