Australian Dollar Breaks Key Support Against US Dollar

The AUDUSD currency pair’s pullback from the 0.6713 high has extended to as low as 0.6607, breaking below the support of the rising price channel visible on the 4-hour chart. This technical breakdown suggests that the recent upside move from 0.6361 has likely completed at 0.6713.

Further Downside Risks Emerge

Following the break of the rising channel support, further losses in the AUDUSD appear likely. The next key downside targets are located in the 0.6560 and 0.6460 areas.The path of least resistance for the pair appears to be further losses as the bearish momentum builds.

Resistance Levels to Watch

In the near-term, the first level of resistance to watch is the 0.6660 area. A breakout above this level could potentially see the AUDUSD retrace toward the 0.6713 previous high resistance.However, only a move above 0.6713 would likely signal that the uptrend from 0.6361 has resumed, with the next key target on the topside in the 0.6790 zone.

Downside Momentum Building

For now, the technical bias has shifted to a more bearish outlook following the breakdown below channel support. The path of least resistance appears to be further losses toward the 0.6560 and 0.6460 targets.Only a move back above the 0.6660 and 0.6713 resistance levels would ease the downside pressure and shift the bias back to a more neutral stance.

Key Levels to Watch

The key levels to watch in the AUDUSD are the 0.6560 and 0.6460 downside targets, along with the 0.6660 and 0.6713 resistance barriers.

As long as the pair remains below 0.6660, the overall technical bias will remain bearish, with the potential for a more significant decline toward the 0.6460 area if the 0.6560 support is taken out.

The AUDUSD has shifted to a more bearish technical outlook after the recent breakdown below key support levels. Traders will want to closely monitor the price action around the key support and resistance levels highlighted to determine if the downside momentum will continue to build or if a more significant rebound could unfold.