Aussie – Bears Are In Control Pushing Prices Lower

Contributor Image
Written By
Contributor Image
Written By
Tran Dai Phat
Tran Dai Phat, a Forex Educator at FXTM with a Bachelor's Degree in Investment, brings multiple years of financial market experience to the aid of aspiring traders everywhere. He conducts research on stocks, forex, and commodities, sharing his insights to empower traders and encourage the development of simple strategies for maximizing trading potential.

The AUDUSD currency pair on the 4 – Hour Chart has been in a downtrend since 29 October 2021 when it registered the high price at 0.75543, followed by a series of lower tops and lower bottoms.

On 24 November 2021, the Aussie recorded the low price of 0.71829.

Bearish Trend

The price is currently trading below the downward trendline which implies that the bearish bias remains intact.

When applying Oscillator Analysis to the price chart, one can see that the MACD Oscillator is recording values below the zero line.

In the meantime, the current price is trading below the SMA 200 period Moving Average line, a fact which confirms the Aussie’s downward direction.

Furthermore, the Relative Strength Index Oscillator stays below the fifty line, which also indicates the negative sentiment in the market.

Both price action on the chart, as well as the indicators, are in agreement in terms with regards to the pair’s downward bias.

Trade Targets

Three price targets may be calculated upon applying the Fibonacci tool to the price chart.

  • The first price target is estimated at 0.72175 (161.8%).
  • The second price target is seen at 0.71234 (261.8%).
  • The third price target is projected at 0.69712 (423.6%).

While the first target has already been breached. Of course, supply and demand as well as the crowd sentiment will determine the future course of Aussie.

AUDUSD H4 25th Nov


For more information, please visit: FXTM

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

FXTM is a top-rated forex and CFD broker established in 2011 and operating across 4 continents. The company is secure and regulated by leading authorities, including the FCA and CySEC. Offering 1000+ day trading markets and three account types, they cater to all levels of trader.