• AUD/USD bears are lurking in a critical resistance area. 
• The bears are looking for a discount to take put the daily supporting trendline. 

AUD/USD is chipping away at the downside following the People’s Bank of China’s decision to hold rates, but that does not tell the whole story of the pair.

From technical analysis, the price is higher on the day, but also correcting in a typical fashion to mitigate a price imbalance left behind from the bearish daily impulse. The following illustrates the market structure from both a daily and 4-hour perspective. 

AUD/USD daily chart

As illustrated, the price is moving up into a congested area of presumed resistance where the 38.2% and 50% ratios are located near 0.7400/20. This would be presumed to offer an opportunity for bears to renegade at a discount for another push lower to break the dynamic supporting trendline. 

AUD/USD H4 chart

However, in order to do that, there will be a fair amount of 4-hour support to clear first as seen above.