Bears to Take Over from 0.7744 on AUD/USD?

The Australian versus the US dollar currency pair touched the level of 0.7744 and retraced sharply. Is this a sign that the bears are coming back, or it’s just the bulls recharging their batteries?

Long-term perspective
After piercing 0.7010, the price extended until the high of 0.7413, passing two major levels in the process, 0.7191 and 0.7320, respectively.
From 0.7413, the price retraced back to 0.7010. After a consolidative phase caught between the bearish pressure concentrated at 0.7191 and the bullish determination to capture 0.7010, the 0.6991 low — which is part of a false piercing — ignited the bullish engines that were to drive the price beyond the previous peak of 0.7413, on to 0.7639.
As the peak was above the firm area of 0.7639, the bears took their chance and attempted to take over. As a result, the price ebbed a hair away from 0.7463. Still, the bulls responded swiftly, causing a rejection that not only sent the price back above 0.7568 but also crafted a rally to the next zone, 0.7744.
However, this time the bears are the ones causing a retracement, as they closed 2020 at 0.7692, well beneath 0.7744.
Nevertheless, as long as 0.7587 is not taken out, the bulls can resume their climb as validating 0.7744 as support translates into an open path to 0.7914. On the flip side, if 0.7587 becomes resistance, then 0.7453 may be the next bearish objective.

Short-term perspective
The price managed to climb until the 0.7742 high. As expected, a correction phase took shape.
If the correction is limited by 0.7667, then, once it becomes support, 0.7667 can establish the path for 0.7762. Once there, the bulls have a new opportunity to conquer the level. If this happens, then the next bullish objective is 0.7883.
However, if 0.7667 gives way, then the previous peak — 0.7639 — may support the bulls, as it can favor the recovery of the price above 0.7667. But if this does not happen or if 0.7667 becomes a resistance area, then the bears could seize control and, thus, run the price to 0.7580.

Levels to keep an eye on:

D1: 0.7587 0.7744 0.7914 0.7453
H4: 0.7667 0.7762 0.7883 0.7580

If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Original from: www.earnforex.com