The AUD/USD, as can be seen from the H4 chart, is currently trading from a H4 supply drawn from 0.7367-0.7336. Now to keep this analysis straightforward, let’s dive straight in! Over on the weekly chart, the commodity currency is seen retesting the underside or a recently broken weekly demand at 0.7438-0.7315 as supply. Sliding down to the daily chart, we can also see this market teasing daily supply at 0.7402-0.7335 (encapsulates a resistance drawn from 0.7380 and sits within the above said weekly supply).
Now, couple all of this together with the AUD/SGD H4 chart chalking up supply at 1.0089-1.0051 and the NZD/USD H4 chart also positioned within H4 supply at 0.6856-0.6832 (both markets boast a high correlation with the Aussie), we’re sure you’ll agree, at least technically, the Aussie could possibly decline from here.
Our suggestions: Watch for shorting opportunities around the current H4 supply! First target, for us, would be the 0.73 handle, followed by the H4 mid-way support at 0.7250 (bolstered by H4 support at 0.7241 and daily demand at 0.7259-0.7226).