- AUD/USD is pressured but the bulls could be about to pounce.
- The 4-hour M-formation is compelling and so too is the weekly structure.
AUD/USD is under pressure as per the weekly chart and the price has run into the weekly support where the horizontal support meets the dynamic trendline. The bulls might be inclined to engage at this juncture although there will be daily resistance to compete with. The following illustrates the market structure from a weekly, daily and 4-hour perspective.
AUD/USD weekly chart
AUD/USD daily chart
0.7450.80 will be key for the days ahead as daily resistance. However, on clearing there, the bulls will be the running for fresh cycle highs.
AUD/USD H4 chart
The M-formation on the 4-hour chart is a reversion pattern that would be expected to lure in the price, at least to the neckline. A break there will open risk to beyond the 0.75 the figure.