AUDUSD’s attempt to climb above the key resistance level of 0.6624 proved unsuccessful, leading to a sharp drop that breached the previous support at 0.6508 and reached as low as 0.6485. Let’s delve into the technical analysis to understand the potential future direction of the pair.
Further Downturn on the Horizon?
- The recent breakdown below 0.6508 support suggests that the downtrend initiated from 0.6870 might not be over yet.
- Further decline in the coming days remains a possibility, with the next potential target set at 0.6420.
- If the selling pressure persists, the 0.6380 area could be the next point of support.
Resistance and a Glimmer of Hope
- Despite the bearish outlook, an initial resistance level exists at 0.6550.
- A breakout above this level could trigger a bounce and potentially lead to a retest of the crucial 0.6624 resistance.
- Conquering this key resistance level could signal a potential reversal of the downtrend and mark the end of the decline from 0.6870.
The technical picture for AUDUSD appears tilted towards the downside in the near term. However, a breakout above the immediate resistance at 0.6550 and subsequent surpassing of 0.6624 could signal a turnaround. Stay tuned for further developments and keep an eye on these key technical levels for clues about the pair’s next move.