AUDUSD has displayed a positive turn, bouncing from recent lows and exceeding key resistance. This analysis delves into the technical situation and explores potential scenarios for the currency pair.
Bulls Emerge After Sharp Drop
- 0.6477 Support Holds: AUDUSD found support at the crucial 0.6477 level, halting the recent decline.
- 0.6535 Resistance Breached: The bulls then pushed the price above the 0.6535 resistance level, indicating a reversal of the downtrend.
- Fresh High at 0.6580: AUDUSD climbed as high as 0.6580, demonstrating continued bullish momentum.
Resistance Awaits: Bulls Need to Break Higher
- 0.6594 Resistance: The next hurdle for the bulls is the 0.6594 resistance level. A breakout above this level could signal further upside potential towards the 0.6650 area.
Support Levels to Watch: Bulls Need to Defend
- 0.6525 Initial Support: While the sentiment is currently bullish, it’s important to acknowledge potential downside risks. The initial support level to watch is at 0.6525. A decline below this level could indicate a downward correction and potentially bring the price back towards the 0.6477 support level.
Overall Sentiment:
The technical outlook for AUDUSD has shifted bullish following the bounce from 0.6477 and the breakout above 0.6535 resistance. However, the bulls need to overcome the 0.6594 resistance to confirm the uptrend’s strength. Conversely, a drop below 0.6525 could signal a potential trend reversal. Monitoring the price action around these key levels will be crucial in determining the pair’s next move.