AUD/USD at Critical Support: Will the Bearish Trend Continue?
Updated
Overview
AUD/USD is currently in a well-defined downtrend across multiple timeframes, with significant bearish pressure dominating the market. However, the pair is nearing critical support zones, which could potentially trigger a corrective bounce or a continued sell-off.
Daily Timeframe Analysis
- Trend: The daily chart shows the pair consolidating near the 0.6370 level after a prolonged sell-off. The price is attempting to hold above the critical support at 0.6350.
- Indicators:
- RSI is near oversold levels, suggesting a potential corrective bounce.
- Volume shows no significant accumulation, indicating weak bullish participation.
- Key Levels:
- Resistance: 0.6400 and 0.6450 (Short-term resistance zones).
- Support: 0.6350 (Critical level).
-Outlook: A daily close above 0.6400 could trigger a corrective rally toward 0.6450 or 0.6500. On the flip side, a daily close below 0.6350 opens the door for further downside to 0.6300 and 0.6250.
Key Trading Scenarios
1. Bullish Scenario:
- Look for bullish confirmation (RSI divergence or break of 0.6400 resistance).
- Target: 0.6450 and 0.6500.
- Stop Loss: Below 0.6350.
2.Bearish Scenario:
- Wait for a breakdown below 0.6350 with volume confirmation.
- Target: 0.6300 and 0.6250.
- Stop Loss: Above 0.6400.
Conclusion
AUD/USD is at a critical juncture, with a bearish bias dominating the higher timeframes. Traders should watch the 0.6350 support level closely for a potential breakout or breakdown scenario. A corrective bounce toward 0.6450 or 0.6500 is possible, but the overall trend remains bearish unless we see a sustained break above 0.6500.
Disclaimer: This analysis is for educational purposes only and not financial advice. Always conduct your own research and trade responsibly.
AUD/USD is currently in a well-defined downtrend across multiple timeframes, with significant bearish pressure dominating the market. However, the pair is nearing critical support zones, which could potentially trigger a corrective bounce or a continued sell-off.
Daily Timeframe Analysis
- Trend: The daily chart shows the pair consolidating near the 0.6370 level after a prolonged sell-off. The price is attempting to hold above the critical support at 0.6350.
- Indicators:
- RSI is near oversold levels, suggesting a potential corrective bounce.
- Volume shows no significant accumulation, indicating weak bullish participation.
- Key Levels:
- Resistance: 0.6400 and 0.6450 (Short-term resistance zones).
- Support: 0.6350 (Critical level).
-Outlook: A daily close above 0.6400 could trigger a corrective rally toward 0.6450 or 0.6500. On the flip side, a daily close below 0.6350 opens the door for further downside to 0.6300 and 0.6250.
Key Trading Scenarios
1. Bullish Scenario:
- Look for bullish confirmation (RSI divergence or break of 0.6400 resistance).
- Target: 0.6450 and 0.6500.
- Stop Loss: Below 0.6350.
2.Bearish Scenario:
- Wait for a breakdown below 0.6350 with volume confirmation.
- Target: 0.6300 and 0.6250.
- Stop Loss: Above 0.6400.
Conclusion
AUD/USD is at a critical juncture, with a bearish bias dominating the higher timeframes. Traders should watch the 0.6350 support level closely for a potential breakout or breakdown scenario. A corrective bounce toward 0.6450 or 0.6500 is possible, but the overall trend remains bearish unless we see a sustained break above 0.6500.
Disclaimer: This analysis is for educational purposes only and not financial advice. Always conduct your own research and trade responsibly.
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Buying upto 0.65417 level
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