AUD/USD Price Analysis: Bears on the move to break key trendline support
AUD/USD fell 0.57% in the last hour on the back of comments from the Reserve Bank of Australia governor Philip Lowe who says the budget strategy was right but warned that it is possible to cut rates down to 10 bps.
This has lead to a technical situation worth delving into.
In a top-down analysis, and taking into account the state of play in the US dollar, a trade set up could be in the making for bears seeking a discount.
Starting at the lowest time frame to illustrate where an opportunity could be developing, we see that the price has just broken below a critical support line as follows:
4-hour chart
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This is where bears will be drawn to, providing that the longer-term time frames synch with the bearish scenario.
However, bears will be keen to see the price develop sideways above the early October lows and start to provide an opportunity to short at a discount or retest of the counter trendline and resistance.
More to come...