Welcome to another deep dive into the AUD/USD pair, where we’ll dissect the technical landscape and identify key trading opportunities. The market is hovering around 0.6703, showing clear signs of struggle between bullish and bearish momentum. In this post, we’ll break down critical technical levels, highlight Break of Structure (BOS), Fair Value Gaps (FVG), and Order Blocks (OB) to help you make informed trading decisions.
📉 Bearish Bias Still Dominates
Bearish Order Block (OB) at 0.6823 – Major Resistance
At the forefront of the analysis is the Bearish OB located at 0.6823. This level has acted as a significant resistance zone, with price failing to break above it multiple times. Traders need to watch how price reacts when approaching this level again. If we see another rejection here, it could reinforce the bearish momentum in the market.
Tip: Look for rejections and bearish candlestick patterns (e.g., pin bars, engulfing) when price approaches the Bearish OB for potential shorting opportunities.
🔍 Break of Structure (BOS) & Fair Value Gaps (FVG)
Break of Structure (BOS) Below 0.6700 – Signaling Short-Term Weakness
Multiple BOS indicators on the chart show areas where the market made significant directional shifts. A recent BOS below 0.6700 suggests that the market has weakened in the short term, and traders should be cautious about entering long positions until we see stronger confirmation of bullish momentum.
Fair Value Gaps (FVG) Around 0.6660 to 0.6780
The chart highlights several FVG regions, particularly between 0.6660 and 0.6780. These gaps represent imbalanced price areas where liquidity is likely to be tested. Expect price to revisit these zones, filling them before continuing in the prevailing direction.
Tip: FVGs often act as magnet areas. If price retraces into these gaps, it’s a good spot to evaluate possible entries or exits.
📈 Key Support Levels to Watch
Bullish OB at 0.6564 – The Lifeline for Bulls
On the flip side, there’s a strong Bullish OB around 0.6564, which previously acted as a solid support. Price bounced from this level during the last significant decline, offering bulls a lifeline. As long as this OB holds, there’s a chance for another upward attempt.
BPR (Balanced Price Range) Around 0.6700
The price recently entered the Balanced Price Range (BPR) near 0.6700, where both buyers and sellers have shown interest. This area is crucial for monitoring the next potential breakout or continuation. If the price holds above this level, we might see a retest of higher resistance zones.
Tip: The BPR region can be tricky to navigate as it’s a balancing area. Keep a close eye on volume and momentum indicators to gauge market direction.
⚖️ Trade Setups to Consider
- Bearish Setup (High Probability):
- Entry: Short near the Bearish OB at 0.6823 if the price rejects this level.
- Stop Loss: Just above the OB.
- Target: Look for the price to retest 0.6700 and then the Bullish OB near 0.6564.
- Bullish Setup (Countertrend):
- Entry: Long near 0.6564 at the Bullish OB, with price showing bullish reaction.
- Stop Loss: Below the OB.
- Target: 0.6700, or a possible retest of the Bearish OB near 0.6823 if momentum strengthens.
🎯 Outlook Summary: Bearish Dominance with Potential Bullish Pullbacks
In the near term, the bias remains bearish for AUD/USD. Traders should monitor the Bearish OB at 0.6823 closely for rejections, while the BOS and FVG zones around 0.6700 will provide further clues about upcoming price action. For now, any bullish opportunities should be treated with caution unless the price convincingly breaks above 0.6700.
Stay tuned to SeenForex for more real-time updates, chart breakdowns, and in-depth trading strategies!
SeenForex Tip: Price action traders should remain patient, waiting for confluence between key levels, BOS, FVG, and order blocks before executing trades. Always trade with proper risk management.
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