AUDUSD continuing recent weakness brought on by a stronger US currency and a decline in basic metal prices. Tuesday marked a new (slightly lower) 2023 low for the Australian dollar.
AUDUSD Technical Outlook
AUDUSD Bears broke through the bottom of a wider range (0.6563/0.6818, since early March). And put pressure on nearby key Fibo support at 0.6547 (61.8% retracement of the uptrend from 0.6170 to 0.7157). Furthermore a sustained break of AUDUSD support zone would indicate the continuation of the down from 0.7157 (2023 high of February 2). Which had been paused for consolidation over the previous two and a half months.
Although the action is supported by AUDUSD bearish daily studies, greater headwinds are warned by the magnitude of the support. (a yearly low that withstood many assaults). And a southward-moving stochastic that is likely to enter oversold territory.
Moreover bears are continue playing as the price activity slows at this region. declines below the 10DMA (0.6645).
A continuous breach of the AUDUSD pivots around 0.6560/47 would cause new down momentum and reveal the next objectives in the 0.6400 zone (Fibo 76.4% / Nov 10 low).
However only a solid breach of the upper pivots. Which are located in the 0.6670/80 zone, would eliminate bears. And imply an extended range trading period.
Res: 0.6618; 0.6645; 0.6680; 0.6707.
Sup: 0.6547; 0.6516; 0.6480; 0.6422.
