Chart of the Week – Potential AUD / USD Minor Bearish Breakdown Looms
VSheart of the week – AUD / USD
A potential minor bearish AUD / USD breakdown looms
Short term technical analysisclick to enlarge the graph
Time stamp: May 30, 2021 at 1:30 p.m. SGT
Source: CMC Markets
- The recent short-term AUD / USD price action over the past five weeks since April 22 has started to move towards a minor bearish reversal “Head & Shoulders” configuration that increases the chances of a minor bearish breakdown at this point.
- If the short term pivot resistance of 0.7800 is not breached on the upside and a breakout below 0.7690 (the support of the neckline of the bearish “Head & Shoulders”) is likely to trigger a short term bearish movement to target the next middle support area of 0.7530 / 7485 (Swinging April 1 low, Fibonacci expansion at 0.764 of the decline moves from February 25, 2021 high to April 1, 2021 low projected from May 10, 2021 high and 200-day moving average ).
- On the flip side, a 4-hour close above 0.7800 invalidates the bearish scenario of a tightening to retest the secular long-term downtrend line in place since the July 2011 high and high. of the minor swing of May 10 which is defined by the resistance zone at 0.7890. / 7940.