AUDUSD Analysis – May 18, 2023

The AUDUSD pair has witnessed a significant development as it broke below the support level at 0.6635. This break suggests that the downtrend from the previous high of 0.6817 has resumed, signaling a shift in market sentiment towards bearishness.

The breach of the support level indicates that further declines in the AUDUSD pair can be expected. The next target for the bears is located at the 0.6573 support level. If this level is breached, it could potentially pave the way for additional downside movement, with the pair potentially targeting the 0.6500 area.

On the upside, traders should closely monitor the key resistance level at 0.6709. A decisive break above this level would indicate a potential shift in the bearish momentum and could potentially bring the price back towards the 0.6800 region. Until such a breakout occurs, however, the prevailing downtrend remains intact.

It is important for traders to closely observe the price action and monitor any interactions with key support and resistance levels. These levels can provide valuable insights into potential entry and exit points for trades. Additionally, staying informed about market news and economic events that may impact the AUDUSD pair can help traders make well-informed trading decisions.

In summary, the AUDUSD pair has broken below the support level at 0.6635, suggesting the resumption of the downtrend from 0.6817. Further decline can be expected, with the next target at 0.6573. The key resistance stands at 0.6709, and a break above this level could signal a potential bullish reversal. Traders should remain vigilant and adapt their trading strategies accordingly, considering the evolving market conditions in the AUDUSD pair.