AUDUSD remains under pressure, staying below the falling trend line on the 4-hour chart. This technical analysis explores the current situation and potential future scenarios for the currency pair.
Downtrend Prevails: Lower Lows Expected?
- Falling Trend Line Resistance: As long as the price remains below the downward sloping trend line, the downtrend initiated from 0.6594 is considered to be in play. This suggests that further downside moves can be expected.
- Next Target: 0.6442: If the bears maintain control, the next potential target for the price is the previous low at 0.6442.
Bullish Signal: Watching for Trend Line Break
- 0.6530 Resistance: While the current sentiment leans bearish, a breakout above the 0.6530 resistance level could signal a potential completion of the downtrend. This could lead to a reversal and a possible rise towards 0.6594.
Overall Sentiment:
The technical outlook for AUDUSD is currently bearish. The price action below the falling trend line and the presence of resistance at 0.6530 suggest a downward trajectory. However, a break above the trend line resistance could signal a 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.