AUD/USD Price Analysis: Bears seeking a deep correction
|- AUD/USD is back in the hands of the bears as the US dollar hardens.
- Bulls need to defend the 38.2% Fibonacci or face being trapped back to prior structure.
AUD/USD has given back a sizeable amount of the bullish impulse over these past few sessions and the bulls need to commit to the purpose above a critical 38.2% Fibonacci retracement of the daily impulse.
The following illustrates the market structure on both a daily and 30-min time frame.
Daily chart
The daily chart shows that the price is under pressure having rallied way beyond the prior highs. a pullback was inevitable, but the questions whether the bulls will commit to where they need to.
A break of the 38.2% Fibo and support structure opens risk to a deeper 61.8% Fibo retracement and restest of the prior highs.
30 min chart
From a lower time frame perspective the outlook is illustrated with the price already being rejected by the prior support that is now acting as resistance at a key hour pivot point.
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