AUDUSD Technical Analysis Summary

Current Market Overview

The AUDUSD currency pair has recently experienced a significant shift in momentum, moving under pressure after a rally that stalled at a key upward sloping trend line resistance. This shift indicates a potential bearish trend as the pair begins to test critical support levels.

Key Technical Levels

As of the latest analysis, the focus is on the following technical indicators:

• 100-bar Moving Average: Currently at 0.6533, this level is crucial as it aligns with the low of a swing area between 0.6535 and 0.6556.
• 200-bar Moving Average: Positioned at 0.6511, this level is also rising and serves as a significant support point.

Bearish Outlook

A break and hold below the 100-bar and 200-bar moving averages would signal a deeper decline in the AUDUSD pair. The next major target for sellers is at 0.65096, which corresponds to the 38.2% Fibonacci retracement level of the recent upward movement from the June low. A further decline below this level could accelerate bearish momentum, potentially leading to a test of the 50% retracement level and last week’s low around 0.64823.

Market Sentiment

Despite the recent downward movement, buyers still retain some control over the market. A decisive move below the swing area low at 0.6535 and the rising 100-bar moving average would shift the bias firmly into bearish territory, granting sellers increased control. Until such a break occurs, the market remains in a state of uncertainty.