- AUD/USD bears are stalling at a critical daily resistance block.
- The bears are monitoring for bearish structures on lower time frames.
From a daily perspective, the AUD/USD has reached a potential resistance bloc which is guarding the M-formation's neckline near 0.7170. The price on Wednesday is forming a Bearish Doji.
AUD/USD daily chart
The bears will be looking for confirmation that this bullish correction may have ended from Thursday's candle's close. An ideal and textbook outcome would be a bearish engulfing candle such as this:
Bears will be monitoring price action from a 4-hour time frame in hope of a bearish structure over the coming days from which to engage and target a daily downside extension as illustrated above.
AUD/USD H4 chart
The moving averages are showing the price remains in bullish territory but bears wl be on the lookout for a bearish crossover with the 10 moving below the 21 EMA in the sessions ahead. In doing so, a newly formed resistance structure below 0.7120 could be the basis for the downside bias if it holds on subsequent bullish retests.
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