AUDUSD Daily Analysis – May 22, 2023

The AUDUSD currency pair remains entrenched in a persistent downtrend, with the recent bounce from 0.6604 being viewed as a period of consolidation within this overall bearish trend. Traders should exercise caution as the pair navigates key levels, keeping a close eye on potential developments that may signal further downside movement.

As long as the resistance level at 0.6709 holds, the downtrend is expected to persist. This level will be closely monitored by market participants, as a failure to surpass it could pave the way for renewed selling pressure. In such a scenario, the pair may experience a breakdown below the support level at 0.6604, triggering additional downside movement towards the previous low support at 0.6573.

Conversely, on the upside, a breakout above the resistance level of 0.6709 would indicate a potential reversal in the market sentiment. Such a move could suggest that the downtrend has already completed at 0.6604, opening the door for another upward move towards the 0.6800 level. Traders will pay close attention to price action around this critical resistance level, monitoring for signs of sustained bullish momentum.

To summarize, the AUDUSD currency pair continues its downtrend from 0.6817, with the recent bounce from 0.6604 representing a consolidation phase. The resistance level at 0.6709 is critical, as a failure to break above it suggests a potential resumption of the downtrend. Downside targets include 0.6604 and the previous low support at 0.6573. Conversely, a breakout above 0.6709 could indicate a reversal, potentially leading to a rise towards 0.6800. Traders should exercise caution and adapt their strategies accordingly to navigate the AUDUSD market effectively.