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.
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.
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.
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