AUD/USD has been bearish upon producing a bearish engulfing candle. The price has been slowly heading towards the South. However, today’s intraday price action suggests that the pair may make a strong bearish move. The last significant low on the daily chart may let the pair produce a long bearish wave. Thus, the sellers will be keen to make full use of it. Let us now have a look at three vital charts.
Chart 1 AUD/USD Daily Chart
The chart shows that the price made a long bullish move. It had a rejection around the level of 0.72550 twice. At the last rejection, the chart produced a bearish engulfing candle followed by two bearish pin bar. The sellers may keep their eyes to get a breakout at 0.71000 and drive the price towards the South further. The price may find its next support around 0.68000. It means the price has enough space to travel towards the South.
Chart 2 AUD/USD H4 Chart
The chart shows that the price produced a double top and made a breakout at the neckline. If found its support at 0.71450 and consolidated around the level for a while before making a bullish correction. Upon finding its resistance and producing a bearish engulfing candle, the price headed towards the South and made a breakout at the level of 0.71450. As of writing, the price has been bullish in the current H4 candle. It may make a bullish correction. The sellers may wait for the price to go towards the level of 0.71450 and get a bearish reversal candle to go short in the pair. The price may find its next support around the level of 0.70800. In case of a bullish breakout at the level, the price may get choppy before finding and find its next resistance around 0.71900.
Chart 3 AUD/USD H1 Chart
The chart shows that at the last bearish wave, the price headed towards the South upon producing a double top as well. It made a breakout at yesterday’s lowest low and traded below the level for several candles. The sellers may wait for the price to consolidate and produce a bearish reversal candle to go short in the pair. The level of 0.71250 may work as a level of resistance and drive the price towards the downside. If the level is breached, the seller may get another opportunity to go short from the level of 0.71360.
The daily and the H4 chart are bearish biased, but they may take time to get more bearish. However, the H1 chart looks very bearish, which may make the pair produce a bearish candle in the daily chart today.