AUD/USD Price Analysis: Bulls Are Forced To The Edge Of The Abyss

10 and one 10 us dollar bill

Image Source: Unsplash


As per the prior analysis, AUD/USD Price Analysis: Bears are dominating the bias with eyes on break of 0.6900, the price is under water following the breakout below the hand and shoulder pattern that was identified on Tuesday on the hourly chart:

(Click on image to enlarge)

It was stated that a break below 0.6950 opened the risk of a test of 0.6900 again and from a daily perspective, this could have been the most probable outcome for the days ahead: 

(Click on image to enlarge)


AUD/USD update

(Click on image to enlarge)

Zoomed in ...

(Click on image to enlarge)


AUD/USD H1 chart

(Click on image to enlarge)

As illustrated, the price fell and reached towards the prior peak formation near 0.6850

The price is now stalling despite a strong retail Sales number with 90% of the leg work already done in the Asian and European markets.

The risks are now tilted towards a period of consolidation above last week's lows near 0.6850 but a break of resistance and 0.6920 could start to form a bullish consensus on the charts for the days ahead:

(Click on image to enlarge)

With the price now being on the backside of the trend, the bulls could start to accumulate positions here and a move into the shorts could be on the cards. 

However, should the bears commit below 0.6920:

(Click on image to enlarge)

There will be probabilities of a much deeper breakout with 0.6720 eyed at the extreme as per the daily chart.


More By This Author:

NZD/USD Remains Heavily Offered Below 0.6300, Hangs Near Monthly Low Amid Stronger USD
GBP/JPY Flat-Lines Above Mid-160.00s, Eyes Nearly Two-Week High Touched On Monday
Gold Price Forecast: XAU/USD Stumbles To 5-Week Lows At Around $1850 Amid Falling Us Bond Yields

Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with