AUD/USD Bears looking for a bearish structure on the lower time frames in order to extend the daily drop.
Monthly support is a huge stumbling block for the bear.
AUD/USD Price Analysis: 61.8 percent, according to the previous analysis Fibo was not to be, bears up the ante, and there are chances for a negative continuation on a daily and weekly basis.
When looking at the monthly chart, though, it’s worth noting that there’s a major support structure that could yet hold.
The 10-day EMA has put downward pressure on the market, which is now projected to continue southward in the form of a new bearish daily impulse.
While there are significant negative probability, particularly when considering the weekly bearish chart patterns, the monthly support must not be overlooked.
However, when looking at the weekly chart, the failed reverse head and shoulders provides the first negative scenario:
As a result, we have a double top.”
“In the coming sessions, a negative continuation is predicted, with the preceding structure at 0.7365/0.7410 as a target area.”
While selling from support isn’t the best strategy, given the bearish conditions on other time frames, reducing risk on a trade set-up on the 4-hour chart could help limit potential losses if monthly support prevents a downside continuation.
In any case, prior to achieving the first level of monthly support around 0.7530, a constructive breakeven scenario should be evaluated as soon as possible after entering.
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