AUDUSD slowly heading towards major support level, bears are in control

The sellers pushed the AUDUSD pair significantly lower after it hit the critical resistance level at 0.81308.Initially, the pair found some fresh buying pressure near the 100 days SMA. The short-term traders executed long orders near the dynamic support level at 0.77707 marks and made a decent profit. Though the bulls tried hard to take control of this market the sellers eventually pushed the price well below the 100 days SMA. After forming a consolidation structure near the critical support zone at 0.77530, the bulls tried to rally higher for the second time. However, the sellers take overall control of this market in the last trading week by creating a fresh low at 0.76710.

AUDUSD daily chart analysis

Figure: Clear break of major support level in the daily chart

From the above figure, you can clearly see that the pair has dropped below the major support level at 0.77616.Currently this level we will provide significant amount selling pressure to this pair which will eventually lead this pair towards the minor support level at 0.76710.From that level, we might see some decent bullish bounce which might push this pair higher towards the 100 days SMA. On the contrary, a daily closing of the price below the major support level at 0.76710, will target the low of 11th December 2017.We also have a bearish crossover of the SMA (100 and 200 period) which clearly indicates, the sellers are getting ready to push down the price.

AUDUSD weekly chart analysis

Figure: AUDUSD pair heading towards the weekly trend line support

In the weekly chart, the recent bearish fall for the AUDUSD pair has not yet been completed. We have a strong dynamic support at 0.76144 and most of the professional traders will be looking for bullish price action confirmation signal to execute fresh long orders. The support level is extremely strong as we have 38.2 bullish Fibonacci retracement level drawn from the low of 17th January 2017 to the high of 28th February 2018.If the bulls manage to take control of the market from the weekly trend line support level at 0.76144, the initial bullish target for this pair would the 200 weekly SMA.A daily closing of the price above the 200 weekly SMA will change the overall bias of this pair to bullish. A clear break of the weekly resistance level at 0.79067 will eventually lead this pair towards the high of 14th January 2018.

On the downside, we have plenty of support level to establish strong bearish moment. However, a clear break of the weekly trend line support level at 0.76144 will lead this pair towards the 50% bullish retracement level. From that level, we might see another bullish recovery attempt but eventually, it will target 61.8% Fibonacci retracement level. A clear break of that level will confirm the end of a medium-term bullish trend. Considering the weekly and daily chart analysis, it’s better to look for buying opportunity near the weekly trend line support.