The bearish MACD signals for 4H are joined by failures to cross the 100-DMA and the descending trend line in November to favor sellers.
200 DMA increases the upside filters. Rising wedge confirmation will propel bearish impulseive.
AUD/USD is on slippery ground at 0.7205 after snapping the previous three-day upward trend, which was down 0.35% intraday during Thursday’s Asian session.
The Aussie pair makes good on the previous day’s inability to close above the 100-DMA, and the 14-week-old trend line.
The previous resistance line, which was close to 0.7180 in October, may limit the immediate declines. A trend line with an upward slope, at 0.7170 as of press time, acts as a downside filter.
Notable: A clear break of 0.7170 would require validation from 200-SMA on a four-hour (4Hr) chart. This will back the rising wedge bearish pattern chart pattern. This will then direct AUD/USD sellers towards the 0.6965 area in the early 2022 bottom.
AUD/USD Chart for Four Hours
The 100-DMA and two-week-long resistance lines, respectively at 0.7240 or 0.7275, protect the pair’s immediate upside.
The wedge formation’s upper line and the 200-DMA (on a daily chart), will be key indicators to look out for AUD/USD bulls.
