AUDUSD Daily Analysis – May 24, 2023

The AUDUSD pair has experienced a significant development as it broke below the key support level at 0.6604, signaling a resumption of the downside movement from 0.6817. This breakdown has shifted the near-term outlook for the pair, suggesting that further declines may be on the horizon.

With the breach of 0.6604, market participants can anticipate a continuation of the bearish momentum, potentially pushing the price towards the next target at 0.6573. Traders will closely monitor this level as a decisive move below 0.6573 could set the stage for a further decline towards the 0.6500 area, which represents a significant support zone.

In terms of immediate resistance, the pair will face hurdles at 0.6674, followed by 0.6709. For a potential reversal in the downtrend, a break above these resistance levels would be required. Such a move could trigger another upward momentum towards the 0.6800 level. However, traders should approach any potential upside with caution until further confirmation is obtained.

In conclusion, AUDUSD has broken below the critical support level at 0.6604, indicating a resumption of the downtrend from 0.6817. Further declines towards the 0.6573 level can be anticipated, with the potential to aim for the 0.6500 area. Immediate resistance is observed at 0.6674 and 0.6709, and only a break above these levels would suggest a potential upward move towards 0.6800. Traders should exercise caution and implement effective risk management strategies when navigating the AUDUSD market.