Bulls Rotating Price from 0.7587?

The Australian versus the United States dollar currency pair seems to be getting under bullish influence. Is this actually a trap set by the bears?

Long-term perspective
The 0.6991 low represents the starting point of a rally that, in the first instance, thrust the price to 0.7320 and then maintained a constant peace to the 0.7820 high.
The consolidation tuned into a correction that printed the 0.7563 low, from where the price climbed to the 0.8007 peak. The 0.7563 low represents the “articulation” of the left-side shoulder — marked by the 0.7820 high — with the head — noted by the 0.8007 higher high — of a head and shoulders pattern that just completed its right-side shoulder after the price — following the decline from 0.8007 to 0.7612- ascended from 0.7612 to 0.7848 and ebbed back to the 0.7587 firm area.
Still, as the 0.7587 level — that also represents the neckline — was, at least for the time being, falsely pierced, for the 0.7563 low signs exactly this, one may believe that the bears this time missed their opportunity to shine.
Furthermore, the fact the price managed to trade back in the range above the 0.7621 low after it printed a lower low — see 0.7563 — gives credit to the bulls.
So, as long as 0.7587 remains support, the price may escalate to 0.7744 which, if it does, invalidates the head and shoulders pattern.
However, if the bears succeed and set the price under the neckline, then 0.7453 is their first objective.

Short-term perspective
Following their successful appreciation from the 0.7699 low, the 0.7849 high was a point that favored the bears, for the price declined to the 0.7563 low.
Considering that 0.7580 was falsely pierced, the bulls have all the reasons to be in charge. So, as long as 0.7580 keeps its supportive role, 0.7667 is the main aim. If they check it, then 0.7742 follows.
On the other hand, if 0.7667 proves to be a resistance, then a renewed bearish attempt may invalidate 0.7580, paving the way to 0.7460.

Levels to keep an eye on:

D1: 0.7587 0.7744 0.7453
H4: 0.7580 0.7667 0.7742 0.7460

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Original from: www.earnforex.com