AUDUSD has displayed a bearish signal, breaking below the crucial support level of 0.6521. This breakdown suggests a potential completion of the upside move that began at 0.6442 and peaked at 0.6594. Let’s analyze the situation further to understand the potential scenarios for the pair.
Downtrend in Play: Can Bears Maintain Momentum?
- 0.6521 Breach: Confirmation of Downtrend: The breakdown below 0.6521 confirms the end of the short-lived uptrend and signifies the resumption of the downtrend that started from 0.6594.
- Target: 0.6442 Previous Low: As long as the price remains below the falling trend line on the 4-hour chart, the downtrend is likely to continue. The next target for the bears would be to retest the previous low of 0.6442.
Potential Bullish Reversal: Watching for Trend Line Break
- Breaking the Trend Line: While the current sentiment favors bears, a break above the falling trend line would be a bullish signal. This could indicate that the downside move is exhausted and trigger another rise towards 0.6600, potentially marking a trend reversal.
Overall Sentiment:
The technical outlook for AUDUSD currently leans bearish. The breakdown below the support level and the presence of the falling trend line suggest a downward trajectory. However, a break above the trend line resistance could signal a potential trend reversal and a return to bullish momentum. Monitoring the price action around these key levels will be crucial in determining the pair’s next move.