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- AUD/USD Price Analysis: Bulls are correcting into a critical area of resistance
AUD/USD Price Analysis: Bulls are correcting into a critical area of resistance
- AUD/USD bears are lurking in a critical resistance area.
- The bears are looking for a discount to take put the daily supporting trendline.
AUD/USD is chipping away at the downside following the People's Bank of China's decision to hold rates, but that does not tell the whole story of the pair.
-
PBoC surprised markets by leaving rates unchanged, but MLF was a give away
From technical analysis, the price is higher on the day, but also correcting in a typical fashion to mitigate a price imbalance left behind from the bearish daily impulse. The following illustrates the market structure from both a daily and 4-hour perspective.
AUD/USD daily chart
As illustrated, the price is moving up into a congested area of presumed resistance where the 38.2% and 50% ratios are located near 0.7400/20. This would be presumed to offer an opportunity for bears to renegade at a discount for another push lower to break the dynamic supporting trendline.
AUD/USD H4 chart
However, in order to do that, there will be a fair amount of 4-hour support to clear first as seen above.
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