AUDUSD Analysis – May 17, 2023

The AUDUSD pair has been moving within a relatively tight range, oscillating between 0.6635 and 0.6709. This consolidation phase suggests a period of indecision in the market and is likely a temporary pause in the overall downtrend from the high at 0.6817. Traders should be cautious of a potential downside continuation as the pair remains biased towards further bearish movement.

The current price action within the range indicates a period of consolidation and balance between buyers and sellers. However, it is essential to note that the broader downtrend remains intact, and traders should monitor the price action for a potential breakdown below the support level at 0.6635. Such a breakdown could serve as a catalyst for additional downside movement, with the next target likely at the previous low support of 0.6573. If selling pressure intensifies, the pair may aim for the 0.6500 area.

On the upside, the AUDUSD pair faces immediate resistance at 0.6709. A convincing breakout above this level would suggest that the downside movement from 0.6817 has already completed at 0.6635, potentially indicating a temporary bottom. In such a scenario, the pair could experience another upward move towards the 0.6800 level.

To summarize, AUDUSD is currently consolidating within a narrow range between 0.6635 and 0.6709. This consolidation phase is likely a temporary pause within the broader downtrend from 0.6817. A breakdown below 0.6635 could trigger further downside movement towards 0.6573, followed by 0.6500. On the upside, a break above 0.6709 resistance could indicate a temporary bottom and lead to another rise towards 0.6800. Traders should closely monitor the price action and stay updated with market developments to navigate the AUDUSD market effectively.