AUD/USD) Bearish Trend Read The captionSMC Trading point update
Technical analysis of AUD/USD (Australian Dollar / U.S. Dollar) on the 4-hour timeframe, with a likely setup for further downside. Here's a breakdown of the idea:
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Technical Summary
Pair: AUD/USD
Timeframe: 4H
Current Price: 0.64688
EMA 200: 0.65140 (price is below = bearish bias)
RSI (14): 48.23 (neutral to slightly bearish)
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Key Observations
1. Break of Trendline:
The previous ascending trendline (black) was broken to the downside.
This indicates a shift in market structure from bullish to bearish.
2. Resistance Rejection Zone:
Price recently retested a strong supply/resistance zone (yellow box near 0.65140) and was rejected.
This aligns with the 200 EMA → strong confluence for a sell setup.
3. Market Structure:
Price is forming lower highs, indicating sellers are gaining control.
The chart shows a projection of a bearish continuation pattern (zig-zag decline).
4. Target Zone:
Final target marked near 0.63700–0.63699, a previous support level.
This gives the setup a decent risk-reward ratio if the rejection holds.
5. RSI:
RSI is below 50, suggesting bearish momentum, but not oversold—still room to move down.
Mr SMC Trading point
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Conclusion & Trade Idea
Bias: Bearish
Sell Zone: Near the resistance area (0.65000–0.65150)
Target: 0.63700 zone
Stop Loss: Likely above 0.65200 (above resistance and EMA 200)
Confirmation: Price action forming lower highs and staying below EMA 200
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