The AUD/USD currency pair has shown signs of life with an initial bounce, finding support around the 0.6360 mark, which corresponds to a multi-month descending trendline connecting lows from March and May. While this bounce offers a glimmer of hope for Aussie bulls, analysts at Société Générale suggest that caution is still warranted as a significant upward move is not yet in clear sight.
The critical level to watch for AUD/USD is 0.6525, which has recently acted as a pivot high. If the pair fails to surmount this level, it could trigger renewed selling pressure. In essence, 0.6525 serves as the first layer of resistance in the short term, and its significance cannot be overstated.
Should AUD/USD remain below 0.6525, the risk of another downward leg becomes a real possibility. In such a scenario, traders should prepare for potential support levels located at projections, as well as the October 2022 low, falling in the range of 0.6200 to 0.6170.
In essence, the currency pair finds itself at a critical juncture, with the potential for both bullish and bearish outcomes. The recent bounce from 0.6360 indicates some resilience, but the path forward hinges on whether AUD/USD can break through the formidable 0.6525 resistance. Traders and investors should closely monitor price action around this level, as it could dictate the pair's near-term trajectory.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell these assets. You should do your own thorough research before making any investment decisions. EnclaveFX Ltd does not in any way guarantee that this information is free of mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in the Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses, and costs associated with investing, including the total loss of principal, are your responsibility.
EnclaveFX Ltd and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. EnclaveFX Ltd and the author will not be liable for any errors, omissions, or any losses, injuries, or damages arising from this information and its display or use. The company is not responsible for errors or omissions.
