AUD/USD Price Analysis: Bears in control, price rejected by key resistance
- AUD/USD is in the hands of the bears as it starts to correct the monthly bullish impulse.
- The price has been rejected by the daily M-formation's neckline and resistance.
AUD/USD is melting to the downside across the time frames in what is expected to be a 50% mean reversion of the monthly bullish impulse.
The following illustrates the downside in motion across the monthly, weekly and daily charts. The 4-hour chart is well entrenched in bearish territory having been rejected at the daily M-formation's neckline.
Monthly chart
The market has topped mid-month. A downside continuation would be expected to make its way to the prior resistance in a 50% mean reversion.
Weekly chart
The price is correcting and is on course towards the prior resistance structure that now would be expected to act as support and slow down the bearish momentum.
Daily chart
The price has been rejected at the M-formation's resistance.
4-hour chart
With the price well entrenched in bearish territory according to the indicators, the market would be expected to continue to melt in accordance with the long-term bearish corrective bias.