Bears gearing up for a breakout of ascending wedge

  • AUD/USD is losing its bullish stance in early Asia.
  • Bears await confirmations that structure to the downside is broken.

AUD/USD has been climbing through the start of the week, rallying from a low of 0.6841 to score a high of 0.6868. However, from a top-down analysis, the pair looks to be riping for a short below trendline support.

An ascending wedge on the lower time frames supports the bearish outlook. However, bears might be prudent for a break below zero in MACD on the 15 min time frame to confirm the bearish territory with price below the 21 moving average. 

Daily chart

An elongated symmetrical triangle and Fibonacci structural confluence on the way to a key downside target.

4HR chart

The price has met structure prior resistance and has failed.

Shorter-term chart

Price is testing trendline support.

15-min MACD remains bullish 

Bears will await a break of the 21 moving average and a cross below zero for a prudent short entry, preferably on a retest of resistance turned to support for confirmation. 

 

 

 

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