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Bulls managed to defend descending triangle support, at least for now

  • AUD/USD failed to capitalize on the recent strong recovery move from multi-year lows.
  • The intraday bias seems tilted in favour of bearish traders, albeit warrants some caution.

The AUD/USD pair traded with a mild negative bias through the early North-American session, albeit has still managed to hold comfortably above the 0.6110 horizontal support.

The mentioned support seemed to constitute towards the formation of a bearish triangle on short-term charts, which should now act as a key pivotal point for short-term traders.

Meanwhile, technical indicators on the 1-hourly chart have been losing traction but maintained their bullish bias on the 4-hourly/daily charts, warranting caution for bearish traders.

Hence, it will be prudent to wait for a sustained break below the triangle support before confirming that the recent corrective rally from multi-year lows might have already run out of the steam.

Traders might then start positioning for the resumption of the prior/well-established bearish trend and a slide towards the 0.6060-55 intermediate support en-route the 0.6015-20 region.

On the flip side, a sustained break through a descending trend-line resistance, currently near the 0.6155 region, will negate the bearish bias and set the stage for additional gains in the near-term.

AUD/USD 30-mins chart

Technical levels to watch

 

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