In today's analysis, we'll take a look at the technical situation of the AUDUSD pair. Looking at the D1 interval, one can notice that the price has been moving in a downward trend for a long time, however from mid-October an upward correction has been forming, the range of which is very similar to the previous correction from the turn of February and March 2022. The first attack on the resistance at 0.6870 failed, but the sellers did not take the opportunity to resume the downward move and buyers managed to climb higher during the second attempt. Nevertheless, sellers became active during today's session and it will be important on which level today's D1 candle closes. Return below 0.6870, would form a bearish engulfing pattern which could herald a resumption of the downtrend. On the other hand, if the price stays above the aforementioned level, this may spark another upward impulse towards major resistance at 0.7120.
AUDUSD interval D1. Source: xStation5
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Open real account TRY DEMO Download mobile app Download mobile appLooking at the lower time frame - H4, one can notice that the current upward move is related to the Overbalance methodology. In the short term, the level of 0.6887, which is marked with previous price reactions, seems to be crucial. A break lower may trigger a larger downward move. In this scenario, the support 0.6705 - 0.6692, where the lower limit of the local 1:1 structure is located (green rectangles), will be crucial. This zone perfectly matches the support from the D1 interval, marked with EMA100. Break below would violate previously discussed upper limit of the wide 1:1 pattern from the higher timeframe (Red Rectangles) and could lead to a deeper sell-off. On the other hand, if the price stays above the 0.6887 mark, another upward impulse may be launched.
AUDUSD interval H4. Source: xStation5
