Aud/usd Price Analysis: Bears Challenge 20-hour Sma Near 0.7730

Aud/usd Price Analysis: Bears Challenge 20-hour Sma Near 0.7730

  • Trade Ideas
  • Forex
  • 2021, 09 June

Brief:

The AUD/USD pair edges lower on Wednesday in the initial European trading hours. The pair makes very restricted moves with negative bias.

At the time of writing, AUD/USD is trading at 0.7735, down 0.06% for the day.

On the daily chart, the AUD/USD pair has been trading inside the Head and Shoulders pattern, a bearish reversal trading formation. The pair is expected to trade lower once it breaks the 0.7730 key psychological mark.

AUD/USD could be directed toward the 0.7710 horizontal support level followed by the low of May 28 at 0.7676.

The Moving Average Convergence Divergence (MACD) trades in the overbought trajectory with receding bullish momentum. This would bring more selling opportunities for AUD/USD bears as they would be encouraged to meet the 0.7650 horizontal support level. 

Alternatively, if price sustains above the 20-hour Simple Moving Average (SMA) at 0.7735, then it could continue to move upward the high of June 7 at 0.7766. 

Market participants would then traced back to May 18 high at 0.7814 followed by the 0.7840 horizontal resistance level.

Suggestion:

Sell below 0.7765 for 0.7730 and 0.7710

Else

Buy above 0.7765 for 0.7780 and 0.7795

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