- AUD/USD bears are lurking at a critical juncture.
- The timings of the week leave the bulls vulnerable to a squeeze.
AUD/USD is reaching toward a trendline resistance and horizontal resistance on the daily chart and could be on the verge of capitulation given the timing of the week as we head into the last two days of sessions with key events coming up on the calendar. The following illustrates the potential for the downside into the London and US sessions after a fresh high that has been put in in Asia, so far.
AUD/USD daily chart
The price is wedged into a coil and could be petering out currently. A move down into the longs that were built up over the past two days makes them vulnerable.
The 4HR & 1HR charts
This chart shows prospects of a continuation higher, but the bias remains to the downside, especially on a break of 0.6450 as the following hourly chart shows:
The trendline support, if broken, will expose the structure if 0.6450 and a break of which could lead to a cascade of market orders being triggered to the short side for the day ahead.
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