AUD/USD Aussie Bulls tread water carefully as bears attempt to go deeper
On market open this week AUD/USD saw new lows of 0.6584 which have not been hit in 11 years! Since making the new low AUD bulls have attempted to push higher and regain some ground managing to recover back to the 0.6820 level today before once again meeting bearish momentum coming into the market.
AUD/USD is under the spotlight right now as investors watch how the AUD in particular will perform over the coming days and week. Any further weakness can see a big sell off as AUD bears will go in search of the next support which is nowhere to be seen right now. If we see a sell off on the AUD this will in turn have an effect on other AUD crosses such as GBP/AUD which is currently pushing to regain the 4 year highs against the weakening Aussie dollar.
Currently AUD/USD is in a minor 1 hour bullish trend attempting to make up so ground however a bearish push lower in today’s London session sees price currently retesting a minor 1 hour support of 0.6980-0.6900 area. This level will be important to watch as should this break we can see all time frames once again pointing south.
4 hourly we can see price is within a consolidation between 0.6885 - 0.6620 so this pair should be met with caution whilst ranging in this zone. If we are going to see a break to the upside price may continue to consolidate in the zone until enough buyers step into the market and believe we can go higher but this make take some time and patience!
Critical levels to watch on this pair of the consolidation zone and break above the range could be what we need to entice new buyers and be the catalyst for a well needed retracement higher however, a break below could see the flood gates open on this pair and a fast decline.
Be patient and wait for a clear break and close above or below for the next move on this pair to confirm the next big move on this pair.