AUDUSD Chart Indicates Upcoming Bearish Correction
AUD/USD, commonly known as the “Aussie,” is a popular forex pair representing the Australian dollar against the US dollar. This currency pair is heavily influenced by commodity prices, economic data, and central bank policies from Australia and the United States. Fundamentally, today traders will closely monitor key US economic indicators including Initial Jobless Claims, Productivity and Labor Costs data, and Trade Balance figures. Stronger-than-expected labor market data and positive trade balance results typically strengthen the US dollar, putting bearish pressure on the AUD/USD pair. Conversely, weaker-than-expected numbers could offer support to the Aussie.
Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
Analyzing the AUD/USD H4 chart, the candles had previously been in a gradual bullish trend characterized by proportionate corrections, but recently, the upward momentum accelerated significantly. The recent formation of a regular bearish divergence on the MACD indicator (values: 0.00005, 0.00505, 0.00500) combined with the appearance of tweezer top candlestick patterns suggest a potential bearish reversal. Additionally, the stochastic oscillator, currently at overbought levels (81.77, 88.43), further supports the possibility of downward pressure. Moreover, the price is approaching the EMA (9) line at 0.70035, indicating diminishing bullish momentum and potential for bearish correction in the short term.
•DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.
