The AUD/USD pair has reached an all-time high on December 31, after climbing to the 1.0255 level. However, the inevitable outcome wasn’t late to come, and a bearish correction promptly took place. By now, the pair dropped about 400 pips and is currently trading near the 0.9840 level. As technical analysis shows, the bearish correction did not reach its end quite yet.
• The chart below is the AUD/USD 4-hour chart by ForexYard.
• It can be seen that the bullish move which was initiated at December 17 has completely erased by now, and the pair resumed to its former levels.
• A second consecutive bearish cross of the Slow Stochastic indicates that the bearish momentum is still strong, and that further bearishness should be expected.
• In addition, the MACD has lately completed a bearish cross as well, also suggesting that another bearish move might be impending.
• The pair recently saw a failed attempt to cross the 0.9800 support level. It now seems that another attempt to breach the support level will take place soon. If the pair will fall below the 0.9800 level, it has potential to drop towards the 0.9750 level, and even the 0.9670 level.
• Nevertheless, if the pair will see another fail attempt to cross the support level, a bullish move might be triggered as a result.
• On this case, the pair could climb towards the 0.9885 resistance level.
• The next resistance levels are located at the 0.9930 and 0.9980 prices.
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Yan Petters is a top analyst of market trends who specializes in the forex market. Yan has a reputation for composing highly accurate analytical reports, both technical and fundamental. Yan Petters' ground-breaking perspectives on currency trends are highly valued by his colleagues and clients and has been a featured author on a number of influential trading sites. Yan Petters is an author for the ForexYard blog
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