FOREX Chart Of The Day: AUDUSD- Price Rejects Major Resistance
#AUDUSD has recently rejected the major resistance showing signs of a bearish move.
The 4hr trend has changed, offering short opportunities.
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
In this video, we will go through AUD/USD as the price has rejected the previous structure highs.
We spoke about AUD/USD in the Forex Market Outlook a while ago. The price was coming back down to this key supporting area. What we needed and what we saw was a nice bullish rejection of that on our daily timeframe. We suggested looking for buys through this period to this resistance level, here.
Well now, the price hit that resistance level. What can we expect from the market? Well, like we always talk about, the price is always evidently flowing. We get lower lows and lower highs in downtrends; higher highs and higher lows in uptrends. What we see, at the moment, is one move into previous resistance levels, here.
I would like to see the price break back to the downside and find some support, and we could find some support back down in this area here, around 7670. The reason is that we have previous structure support, here, and resistance. Then, we may see the market continue to push to the upside.
We’re seeing a little bit of a downside at the moment because the Stock Indices are falling. We’ve got a little bit of risk-off in the market, and we’ve also seen the US Dollar gain some value, which is putting pressure on AUD/USD currently.
What we usually do when looking at these areas in the daily pullbacks is we go to our four-hour and look at the trend just like if we were looking to buy here. The reason is that the four-hour change cycle and the market rallied to the upside.
Now that we’re in this area, what is the price going to do next? If I bring in another drawing, we can see that the market found resistance, breakthrough, support, hit the major swing level, and broke to the downside where it retested at 7770.
So, we looked for a short at 7770. Targets are currently around 7677. You can see, here, the price came up, retested that structure, and started dropping to the downside – lovely.
But, how do we get on the back of this? Now I’ve got one or two options: you have to wait for the price to come back into 7770 once again for a retest and a continuation move, or we wait for the trend to play out. We wait for the market to create a new lower low. We wait for the price to pull back into this area where the market found resistance, support, and support. Is it going to find resistance here, around current prices: 7742s, 7745s? If the price gets back into this level, we could then look for a continuation down into this key area of 7677.
Well, at the moment, the price is looking very bearish here. If we look at the higher timeframe of the daily, we can see that we’re rejecting. I’ll expect the price to come into a level of support. Clear level support on the daily timeframe is 7677 – watch for this price to be retested.
I hope you enjoyed this video update, and I’ll see you in the next one.
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