FX.co ★ MRamzan | AUD/USD

Based on the provided chart for AUD/USD (H1 timeframe), here is a breakdown of the current market structure and technical indicators visible. 1. Market Structure & Trend Analysis Overall Trend: The chart shows a strong downward trend** initiating around May 13th, transitioning into a consolidation/ranging phase starting from May 15th. The ZigZag Indicator (Blue & Red lines): The overlaying sharp lines are from a ZigZag indicator, which helps filter out market noise to highlight major peaks (highs) and troughs . Current Phase: Since hitting a major low around May 19th (near 0.7100), the market has been making slightly higher lows but has failed to break significantly higher, trapping the price in a horizontal trading range between roughly *0.7100 and 0.7180. 2. Key Support & Resistance Levels Looking at the peaks and troughs mapped by the ZigZag lines, we can identify critical psychological and technical zones: Major Resistance Zone (~0.7170 – 0.7185): Multiple recent peaks have stalled out in this region (around May 15, May 22, and May 26). Sellers are consistently stepping in here. Immediate Support Level (~0.7130): The current price (0.71298) is resting right on a previous minor structural shelf. Major Support Zone (~0.7100): This is the lowest point on the chart (around May 19). If the immediate support fails, this is the ultimate defensive line for buyers. 3. Current Price Action & Candlestick Observations Location: The price is hovering at 0.71298, with 09:59 minutes left on the current candle. Recent Momentum: The most recent leg tracked by the ZigZag indicator is red (downward), showing short-term bearish control over the last session as it moves away from the 0.7170 resistance. Trading Outlook & Scenarios Because the market is currently consolidating within a broader range, trading the edges or waiting for a breakout are typical approaches: Bearish Scenario (Breakdown): If the hourly candles close decisively below the current 0.7130 level, momentum will likely carry the price back down toward the major support floor near 0.7100. Bullish Scenario (Range Play): If buyers defend this current level (forming a bullish reversal candlestick like a hammer or engulfing pattern), the price may bounce back toward the upper range boundary near 0.7170. Are you looking to place a short-term scalp on this range, or are you trying to catch a larger breakout trend?