- AUD/USD is above a critical support level which leaves the bears in the sidelines.
- The downside is compelling on a break and hold below the structure.
AUD/USD has been capped in its pursuit of the mid-summer highs in the mid 0.73 area. Bears are seeking an opportunity to short from the supply zone, but await a break of daily support.
The following is a top-down analysis to illustrate where the next bearish opportunity might arise.
Monthly chart
Weekly chart
The monthly and weekly show the price in a supply zone and the weekly high’s wick was a strong rejection.
This area is expected to hold and create a shorting opportunity on repeated upside failures.
Daily chart
Bears need to see a retest of the old support turning resistance prior to target the series if support structure to the downside.
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