AUD/USD: near-term prospects
Australian dollar remains under bearish pressure, falling to $0.9330 on Tuesday. As can be seen from the H4 chart, the Aussie is now testing the lower border of a short-term bearish channel.
Last week’s rally has taken the pair to $0.9395 – 38.2% Fibonacci from the 2013-2014 decline and the 2013-2014 descending trend line. However, the bulls failed to push higher for now.
This week we expect the pair to continue a decline. The next short-term support for the pair lies at $0.9320 (Apr. 28 high) and $0.9280/65 (2014 channel support, daily Cloud). Break below this area would be a selling signal.
On a bullish side, close above $0.9400 would open the way to $0.9460 and then – to $0.9500.
Chart. H4 AUD/USD