- August 5, 2024
- Posted By: james w
- Category: Market News
Trading AUD/USD: H4 Chart Bearish Patterns and Signals
The AUD/USD pair, often referred to as the “Aussie,” represents the exchange rate between the Australian dollar and the US dollar. Known for its liquidity and volatility, the Aussie is heavily influenced by economic indicators and commodity prices, particularly gold and iron ore. Today’s trading environment for AUD/USD may be impacted by the Bank Holiday in Australia, which could lead to lower liquidity and irregular volatility. Additionally, the release of the MI Inflation Gauge m/m in Australia will provide insights into consumer inflation, which, if higher than expected, could support the AUD. On the US side, key economic releases such as the Final Services PMI, forecasted at 56.0, and the ISM Services PMI, expected at 51.4, will be closely watched. These indicators, if they exceed forecasts, may strengthen the USD against the AUD.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
Analyzing the AUD/USD H4 chart, the price is currently ranging between the lower Bollinger Band and the middle band, with 7 out of the last 10 candles being bearish. The last 3 candles have moved from the middle band towards the lower band, indicating a strong bearish trend. The price is situated between the Fibonacci retracement levels of 0.618 and 0.786, acting as potential support and resistance zones. The Bollinger Bands are stable, neither expanding nor narrowing significantly, suggesting a steady market condition. The MACD indicator shows a bearish trend, with the MACD line below the signal line and the histogram in negative territory, reinforcing the bearish momentum. Volume levels have been consistent with recent price action, supporting the bearish sentiment. Traders should monitor for a breakout below the 0.786 Fibonacci level for further bearish confirmation or a potential bounce towards the middle Bollinger Band for a bullish reversal.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.