(AUD/USD)
Forex market analysis for the Australian Dollar/US Dollar (AUD/USD) pair on the 4-hour timeframe employs multiple technical indicators for decision-making. We utilize the Extended Regression StopAndReverse indicator alongside the classic RSI (14) and MACD indicators with standard settings to validate entry points into the market.
The chart illustrates that the first-degree regression line (golden dotted line), indicating the true trend's direction and state, exhibits a southward slope, suggesting a prevailing downward movement phase. Moreover, the nonlinear regression channel (convex lines), utilized for near-future predictions, has intersected the golden channel line from top to bottom, reinforcing the downward trajectory.
While the price breached the red resistance line of the linear regression channel's 2nd LevelResLine, reaching a peak value (HIGH) of 0.66681, it subsequently retraced and is currently trading at 0.66157. Considering these factors, it's anticipated that price quotes will revert and consolidate below the channel line 2nd LevelResLine (0.64600), coinciding with the Fibonacci level of 23.6%. This suggests a further downward movement towards the golden average line LR of the linear channel at 0.64434, aligned with the Fibonacci level of 0%.
An additional confirmation for initiating a sell transaction stems from the RSI (14) and MACD indicators, both indicating overbought conditions. Thus, the convergence of signals from multiple indicators strengthens the rationale for entering a selling position in the AUD/USD pair.
In summary, the technical analysis points towards a bearish outlook for the AUD/USD pair on the 4-hour timeframe, with indications suggesting a potential decline in price towards key support levels, supported by the convergence of signals from the Extended Regression StopAndReverse, RSI (14), and MACD indicators. Traders should remain attentive to market developments and adjust their strategies accordingly to capitalize on potential trading opportunities.
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