AUDUSD has displayed a fresh wave of decline, breaking below a key support level. This analysis examines the technical situation and explores potential scenarios for the currency pair.
Downside Move Gains Momentum:
- 0.6584 Support Breached: AUDUSD decisively fell below the support level at 0.6584. This technical breakdown suggests a potential reversal of the uptrend that began at 0.6477.
Further Decline Expected:
- Targets on the Radar: In the near future, we might see the price continue to decline with the next target zone around 0.6535. A further break below this level could see the price fall towards the 0.6500 area.
Signs of a Potential Rebound:
- 0.6585 Initial Resistance: While the immediate outlook appears bearish, a possibility for a bounce still exists. The initial resistance level to watch is at 0.6585.
Upside Reversal Signal:
- Falling Trend Line Resistance in Focus: A more significant indication of a potential trend reversal would be a breakout above the falling trend line resistance on the 4-hour chart.
- Upside Move Resumption: If this technical hurdle is overcome, it would suggest that the downside move from 0.6667 might be over. This scenario could pave the way for another rise towards the previous high at 0.6667.
Overall Sentiment:
The technical outlook for AUDUSD leans bearish in the short term. The breakdown below 0.6584 support suggests a potential continuation of the downtrend. However, a potential bounce could occur if the price finds support around 0.6585. A decisive break above the falling trend line resistance would be a strong signal for a potential trend reversal towards the upside. Monitoring price action around these key levels will be crucial in determining the future direction of AUDUSD.