AUDUSD has continued its recent decline, reaching a new low point. This analysis examines the technical situation and explores potential scenarios for the currency pair.
Downward Trend Gains Traction:
- Fresh Lows Established: AUDUSD has extended its downside move from 0.6667, reaching as low as 0.6503. This price action reinforces the dominance of the falling price channel visible on the 4-hour chart.
- Downturn Likely to Persist: As long as the currency pair remains within the channel, the downward trend is expected to continue. The next potential target zones could be around 0.6490 and even lower at 0.6460.
Looking for Signs of a Reversal:
- Channel Resistance in Focus: While the immediate outlook appears bearish, a possibility for a reversal still exists. A key level to watch is the channel resistance.
- Breakout Could Signal Trend Shift: A decisive breakout above the channel resistance would be a significant development. This scenario would suggest a possible completion of the downside move that began at 0.6667. Overcoming this resistance level could pave the way for a return towards the previous high of 0.6667.
Overall Sentiment:
The technical outlook for AUDUSD leans bearish in the short term. The confinement within the falling price channel indicates a continuation of the downtrend. However, a breakout above the channel resistance could signal a trend reversal towards the upside. Close monitoring of price action around these key levels will be crucial in determining the future direction of AUDUSD.