The AUD/USD currency pair, on the H4 time-frame, was in an uptrend until the 12th of September when a higher top was recorded at 0.68947. The bears found the price appealing and sellers overcame buyers.
A closer look revealed that the Momentum Oscillator displayed negative divergence between point a and b compared to the price at 0.68848 and 0.68947. This could have alerted technical traders to a possible technical reversal in the making.
After the top at 0.68947 the market broke through the 15 and 34 Simple Moving Averages, the Momentum Oscillator pierced the zero baseline into bearish terrain and the 15 and 34 Simple Moving Averages crossed, forming a so-called Death Cross. This further strengthened the possibility of a technical trend reversal.
A possible critical support level formed when a lower bottom was recorded on the 17th of September at 0.68304. Buyers temporarily pushed the price up and a lower top was registering on the same day at 0.68684, near the 34 and 15 Simple Moving Averages.
If AUD/USD to break through the critical support level at 0.68304, then three possible price targets may be expected from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 0.68304 and dragging it to the top of the pullback at 0.68684, the following targets may be considered. The first target can be anticipated at 0.68069 (161 %). The second price target can be predicted at 0.67689 (261.8%) and the third and final target may be expected at 0.67074 (423.6%).
If the resistance level at 0.68684 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the AUD/USD currency pair on the H4 time frame will remain bearish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
A closer look revealed that the Momentum Oscillator displayed negative divergence between point a and b compared to the price at 0.68848 and 0.68947. This could have alerted technical traders to a possible technical reversal in the making.
After the top at 0.68947 the market broke through the 15 and 34 Simple Moving Averages, the Momentum Oscillator pierced the zero baseline into bearish terrain and the 15 and 34 Simple Moving Averages crossed, forming a so-called Death Cross. This further strengthened the possibility of a technical trend reversal.
A possible critical support level formed when a lower bottom was recorded on the 17th of September at 0.68304. Buyers temporarily pushed the price up and a lower top was registering on the same day at 0.68684, near the 34 and 15 Simple Moving Averages.
If AUD/USD to break through the critical support level at 0.68304, then three possible price targets may be expected from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 0.68304 and dragging it to the top of the pullback at 0.68684, the following targets may be considered. The first target can be anticipated at 0.68069 (161 %). The second price target can be predicted at 0.67689 (261.8%) and the third and final target may be expected at 0.67074 (423.6%).
If the resistance level at 0.68684 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the AUD/USD currency pair on the H4 time frame will remain bearish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.