FX.co ★ AUD/USD

Based on the provided AUD/USD H4 chart, the pair is in a strong and steady downtrend over a longer timeframe, having declined from above 0.7120 to a current level near 0.7078. The price action shows a clear sequence of lower highs and lower lows, with the market finding consistent resistance at descending levels. The price is currently consolidating in a very tight range just above the 0.7070 support level, which may represent a brief pause before a potential continuation downward. Selling Plan: The primary strategy aligns with the dominant downtrend. Traders should look for opportunities to sell on any rallies towards new resistance levels. Key resistance for potential short entries is at the recent breakdown level of 0.7120 and the descending trendline. A more immediate and practical resistance is the minor high near 0.7080; a rejection here could offer a short entry for a retest of the low. A bearish reversal candlestick pattern forming at these resistance levels would provide a high-probability signal. The initial profit target for a short position is a break below 0.7070, aiming for 0.7030 and then 0.6985. A stop loss should be placed just above the entry resistance, approximately at 0.7090 if selling near 0.7080. Buying Plan: Entering long is a high-risk, counter-trend strategy on this H4 chart. A buying plan would only be valid upon clear evidence of a major trend reversal, which is not present. This would require a decisive break and hold above the significant resistance at 0.7120. A more conservative approach for buyers would be to wait for a bullish reversal pattern (like a double bottom or bullish divergence) to form at a major historical support level, such as 0.6985 or 0.6940. Given the established downtrend and lack of bullish structure, any attempt to buy at the current consolidation is not advised. The momentum and timeframe strongly favor the selling plan.