AUD/USD – Technical Analysis – 4h

Recently, there is a noticeable bullish engulfing pattern near the end of the chart, which suggests a potential reversal or bullish pressure after a downtrend.

The trend has been bearish, as seen from the consistent lower highs and lower lows in the latter part of the chart. However, the recent bullish candlestick indicates possible bottoming out.

The recent low near 0.6460 acts as a potential support, with resistance around the 0.6560 level observed from previous highs.

The MACD line is below the Signal line, indicating bearish momentum. However, it seems to be curving upwards, signaling a possible upcoming bullish crossover.

The histogram shows decreasing bearish momentum, evidenced by the shorter red bars. This suggests weakening bearish pressure.

There might be a mild bullish divergence, as the price made a lower low while the MACD did not significantly follow through, suggesting a potential reversal.

There is no significant spike in the trading volume that contradicts the price movement, implying the price actions are in line with modest trading activity.

The slight increase in volume with the recent bullish candlestick could support the potential reversal.

No noticeable spike suggests heavy institutional activity; it's relatively stable.

Support Zone: Near 0.6460, which has been tested recently and held as support.

Resistance Zone: Around 0.6560, provided by previous highs, marking a critical level for any potential upward movement.

Observing these levels will help anticipate market entries and exits.

Consider buying if the price breaks above recent resistance with increased volume, especially if MACD crossover confirms bullish momentum.

Sell if the price breaks below the 0.6460 support, particularly if accompanied by increased bearish volume and further MACD divergence.

Monitoring current levels is advised until clearer signals or breakouts occur. Watch for confirmation of trend reversal before initiating positions.