- AUD/USD bulls are throwing in the towel as per the hourly chart.
- The bears can target the daily W-formation's neckline.
AUD/USD has risen sharply as the US dollar plummets below critical daily support. However, the W-formation is compelling, especially with the DXY now stabilising at deeper support as follows:
DXY daily chart
There are prospects f a bullish correction in the US dollar for the sessions ahead.
AUD/USD daily chart
This rhymes with a downside correction in the Aussie as illustrated above. The W-formation is a reversion pattern and there is a high probability that the neckline will be retested as support in due course. This comes in near 0.7235.
AUD/USD H1 chart
From an hourly perspective if the price breaks support, then the 61.8% Fibonacci retracement that aligns with prior structure and the W-formation's neckline will be eyed.
