AUD/USD Price Analysis: Bears eye the coiled conditions, testing 0.6670 structure
- AUD/USD 0.6670 structure will be important for the open.
- AUD/USD 0.6580 guards a test of 0.65 the figure.
Risk tolerance dropped at the end of last week with hawkish central banks. Subsequently, AUD/USD, after taking out the channel support, is now eyeing a move towards the Volume Point of Control (VPC) of the late August to mid-October bear cycle as follows:
In the meanwhile, the neckline of AUD/USD M-formation could serve as the resistance of a possible stronger correction in the coming days and that could lead to a downside continuation below the now counter-trendline to target the 0.65s.
AUD/USD H4 chart
On the 4-hour time frame, the descending triangle is a bearish formation that anticipates a downside breakout:
0.6670 structure will be important for the open as it guards a move lower that will lock in the highs and potentially carve the downside bias out for the initial days of trade for this week. 0.6580 guards a test of 0.65 the figure.