AUDUSD Daily Analysis – August 28, 2023

AUDUSD currently finds itself in a phase of sideways consolidation, operating within the confines of a trading range established between 0.6363 and 0.6487.

The critical factor to monitor in this situation is the resistance at 0.6487. As long as this level remains unbreached, the lateral movement should be regarded as a consolidation phase within the broader downtrend that initiated from 0.6894. If the price manages to break below the support at 0.6363, it could serve as a catalyst for further downside action, potentially directing the pair towards the 0.6300 area.

Nevertheless, there’s an alternative scenario to consider. Should AUDUSD successfully breach the resistance at 0.6487, it could indicate that the preceding downward movement from 0.6894 has concluded. In this case, the next significant target on the radar would be the 0.6600 area.

In summary, AUDUSD is presently navigating a period of consolidation, with its future trajectory dependent on the interplay between key support and resistance levels. This setup offers traders a pivotal juncture to assess potential price developments.