AUD/USD H4 Possibly busy with a technical reversal
AUD/USD, on the H4 chart, was on a downward path from the end of February until the 8th of March when a bottom was recorded at 0.70034. There buyers came into the market and demand overcame supply with upward pressure building. The price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator registering an upward break of the zero baseline. This was soon followed by a cross of the 15 and 34 Simple Moving Averages, also referred to as a Golden Cross, adding strength to the possible change in market direction to the upside.
On the 12th of March a higher top was reached at 0.70923 and this might prove to be a critical resistance level. Sellers temporarily managed to drive prices lower and a bottom was recorded at 0.70487 as the price bounced on the 34 Simple Moving Average.
If the AUD/USD manages to break through the critical resistance level at 0.70923, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible reversal at 0.70923 and dragging it to the bottom of the pullback at 0.70487, the following targets can be considered. The first target can be anticipated at 0.71192 (161.8 %). The second price target can be expected at 0.71627 (261.8%) and the third and final target may be projected at 0.72332 (423.6%).
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the AUD/USD currency pair market on the H4 timeframe will remain bullish.
On the 12th of March a higher top was reached at 0.70923 and this might prove to be a critical resistance level. Sellers temporarily managed to drive prices lower and a bottom was recorded at 0.70487 as the price bounced on the 34 Simple Moving Average.
If the AUD/USD manages to break through the critical resistance level at 0.70923, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible reversal at 0.70923 and dragging it to the bottom of the pullback at 0.70487, the following targets can be considered. The first target can be anticipated at 0.71192 (161.8 %). The second price target can be expected at 0.71627 (261.8%) and the third and final target may be projected at 0.72332 (423.6%).
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the AUD/USD currency pair market on the H4 timeframe will remain bullish.