The AUDUSD currency pair has experienced a significant fall from its recent high at 0.7157, extending down to 0.6457. Market participants are now anticipating the possibility of further downside movement over the next several weeks, with the next target projected at 0.6300. This level is followed by the previous low support at 0.6170.
As the pair continues its bearish trajectory, it is essential for traders to closely monitor key resistance levels that may impede the downside momentum. One such level is 0.6800, which currently acts as a significant barrier to any potential upward movement. A breakout above this level could provide an indication of a shift in market sentiment and bring the price back towards the falling trend line on the weekly chart.
Technical analysis can play a crucial role in assessing potential price movements and confirming trading opportunities. By analyzing chart patterns, trend lines, and key support and resistance levels, traders can gain insights into potential entry and exit points. Additionally, technical indicators can offer valuable information regarding momentum, volatility, and potential reversal patterns.