AUD/USD Price Analysis: H1 M-formation holds the bears hostage for the open
- AUD/USD´s H1 M-formation, a reversion pattern, holds 0.6600 as a target for the open.
- AUD/USD bears need to get below a consolidative pattern and support near 0.6570.
As per the prior analysis and before the Nonfarm Payrolls event on Friday that sent the US Dollar substantially lower, AUD/USD remains in the realms of a geometrical bearish formation:
AUD/USD prior analysis
It was stated that the price was carving out a geometrical box, an ascending triangle, in a downtrend which is considered a bearish chart pattern.
´´Two-way price action can be expected from here with a bearish bias while on the front-side of the bear trend and below the 200 DMA,´´ the analysis stated with 0.6520 being key in this regard as it guarded a move towards 0.6380.
AUD/USD update
The triangle formation has morphed into a sideways consolidation. Of note, an M-formation has formed on this hourly chart:
The M-formation is a reversion pattern and the price can be pulled into the neckline for a restest which is yet to play out, so far. However, it is worth noting for the open this week with 0.6600 being a key level in this regard.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
