AUDUSD has displayed renewed weakness, extending its recent decline. This analysis examines the technical situation and explores potential scenarios for the currency pair.
AUDUSD Extends Downtrend:
- Fresh Lows Established: AUDUSD has extended its downside move from 0.6644, reaching a new low of 0.6385. This move strengthens the ongoing downtrend.
Downside Momentum Persists:
- Further Decline Possible: The downtrend could continue in the coming days. The next potential target zone to watch could be around the 0.6340 area.
Signs of a Correction?
- 0.6430 Initial Resistance: While the immediate outlook remains bearish, there are potential signs of a short-term correction within the downtrend. A break above the initial resistance level at 0.6430 could indicate such a correction.
Upside Scenario if Resistance Breaks:
- 0.6460 Resistance Level: If the price breaks above 0.6430, the pair could encounter resistance around 0.6460.
Overall Sentiment:
The technical outlook for AUDUSD remains bearish in the short term. The extension of the downtrend is the dominant theme. However, a break above the initial resistance at 0.6430 could indicate a temporary correction within the downtrend. Close monitoring of price action around this level will be crucial in determining the future direction of AUDUSD.