AUDUSD: Is the Rise Just a Trap?

Apr 10

On the H4 timeframe, AUDUSD may be showing signs of weakness as the price was strongly rejected at the 0.710 level – a crucial resistance area coinciding with the long-term downtrend line. Despite a relatively strong rally earlier, the inability to hold above this level indicates that buying pressure is gradually waning and sellers are regaining their dominance.

The current price configuration leans toward a bearish outlook with lower quality, and the price is entering the Ichimoku cloud – a sign that the upward momentum has lost energy. As a result, with a risk-off market and a stronger USD following recent news, selling pressure on AUDUSD in the short term is becoming clearer.

In the next 24 hours, the price may recover around 0.705–0.707 before continuing to fall towards the 0.700–0.697 region. If the rate of decline reaches 0.697, the downtrend will be fixed with a deeper target around 0.690 – 0.685.

In short, the moderate upward movement is most likely just a pullback within the downtrend. This is not a breakout, but rather a bullish trap before the price continues to fall.

Apr 11

Trade active