Looking at the 4-hour chart for the AUD/USD we see that price moved as high as 0.99827 during the North American session, but has since retreated somewhat with the past 2 4-hour candles being bearish. The turning point came at the daily resistance zone of 0.9953 which also matches up with the 50% retracement level from the high of September 20th. Support will be found at 0.9830 and 0.9735 below that. This is possibly just a pull back before price moves higher, or it could be the start of a continuation to the down side...however, as a general rule, price moves in opposite directions during the Asian sessions than it does during the UK and NA sessions. Since we are remaining bearish with about 3 hours to go before the UK open, I would expect this pair to move higher. We will need to see price break above 0.9953 to be considered bearish on a daily time frame, and then resistance will be found at par, or 1.0044 roughly. Considering the fundamental information coming out of the EU recently I would consider that this pair will indeed move higher soon, but as always, we only trade what the charts tell us.
Happy Trading!
