Lower levels likely on the AUD/USD according to structure

AUD/USD:

Monthly timeframe:

(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)

April’s 370-pip advance, together with May’s 2.2% run higher has, as you can see, landed price at the door of supply fixed at 0.7029/0.6664, an area intersecting with a long-term trendline resistance (1.0582).

Regarding the market’s primary trend, a series of lower lows and lower highs has been present since mid-2011.

Daily timeframe:

Risk-on trade rejuvenated an Aussie bid Tuesday, elevating AUD/USD 1.7% to the upside. The 200-day simple moving average seen around 0.6656 entered vision, as a result of recent bidding. However, a break through the dynamic value today unmasks channel resistance (0.6557), viewed closely with supply at 0.6777/0.6736.

H4 timeframe:

Heading into Tuesday’s close, H4 addressed supply at 0.6695/0.6664, by way of a Japanese shooting star candlestick pattern, considered a bearish signal. What’s interesting here is the aforesaid supply is glued to the lower limit of monthly supply at 0.7029/0.6664.

Yet, harmonic traders will note an ABCD bearish pattern (orange) completes a handful of pips above the current H4 supply at 0.6708.

H1 timeframe:

After a fleeting move to highs at 0.6675, H1 hovers around 0.6650 as we transition into Asia Wednesday. 0.67 denotes available resistance north of 0.6650, with 0.66 resting as logical support.

The RSI indicator, after registering a vigorous peak at 87.80, exited overbought territory and is within walking distance of RSI trendline support. A break of here could serve as a sign for moves to 0.66.

Structures of Interest:

Having monthly supply at 0.7029/0.6664 in play, together with the 200-day simple moving average and H4 supply at 0.6695/0.6664 in the form of a shooting star candlestick signal, bearish themes sub 0.6650 are an option today, with 0.66 calling for attention as an initial downside target.

Chart PatternsTechnical IndicatorsTrend Analysis

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