AUDUSD Daily Analysis – June 2, 2023

The AUDUSD currency pair has recently experienced a significant breakthrough, as it broke above the falling trend line on the 4-hour chart. This breakout suggests that the previous downside move from 0.6817 to 0.6457 has potentially come to an end, signaling a shift in market sentiment and opening the path for potential upside momentum.

Traders and investors are now eyeing the potential for further upward movement in the coming days, as the pair has surpassed the trend line resistance. The next target for the bulls is likely to be the 0.6709 resistance level. A successful breach of this resistance level could trigger additional buying interest and pave the way for further gains.

The breakout above the trend line resistance suggests a change in market dynamics, indicating an improvement in the outlook for the Australian dollar. Market participants will closely monitor price action around these levels to assess the strength of the bullish momentum. Sustained trading above the trend line resistance would confirm the completion of the previous downside move and support the case for further upside potential.

It is important to note that near-term support levels are at 0.6580 and 0.6550. These levels could act as areas of price consolidation or potential pullbacks. As long as these support levels hold, the bullish bias remains intact, reinforcing the notion of further upward movement. However, a break below these support levels would challenge the bullish outlook and could lead to a retest of the previous low at 0.6457.