The AUDUSD pair has been engaged in a sideways movement, oscillating within the range of 0.6170 and 0.7157. This consolidation phase comes after a long-term downtrend from 0.8006, suggesting that the pair is taking a breather before potentially resuming its downward trajectory.
As long as the price remains below the falling trend line on the weekly chart, the current sideways move can be considered as a period of consolidation within the context of the larger downtrend. This indicates that sellers still have control over the market, and a breakdown below the support level at 0.6457 could reignite selling pressure, potentially pushing the pair towards the lower boundary of the range at 0.6170.
At present, the AUDUSD pair is facing resistance at 0.6899. A successful break above this level would indicate a temporary shift in sentiment and could trigger another upward move. However, it is important to note that the falling trend line on the weekly chart still acts as a significant hurdle for the pair’s upward momentum.
In summary, the AUDUSD pair is currently consolidating within a sideways range, reflecting a temporary pause in the long-term downtrend. A breakout below 0.6457 support could lead to further downside movement, while a break above the falling trend line and resistance at 0.6899 could indicate a short-term shift in sentiment. Traders should stay vigilant and adapt their strategies accordingly as market conditions evolve.