- AUD/USD bears are in the money, but bulls are lurking from daily support.
- A move back to challenge channel resistance could be on the cards for the opening balance at the start of the week.
AUD/USD it may be on the verge of returning back to the sell-off range. The M-formation is a reversal pattern and the sell-off can be expected to slow down as the market moves to support. The following image illustrates this on the daily charts and also looks at the prospects on the hourly chart for next week’s opening.
AUD/USD Daily Charts
Zooming in we have the 0.6640s and 0.6620s and the gap between them which is highlighted as the first support zone. A correction could occur from this point. However, according to the hourly chart, there are prospects for the decline to continue:
AUD/USD Chart H1
A bias is bearish when it is inside a bearish channel. However, the bulls seem to be moving from support, which could be a theme for the open. There are prospects for a move into trend resistance ahead of another bearish continuation for next week’s upcoming initial balance. Conversely, a move above 0.6670 and out of the channel would give a bias in favor of the bulls.
