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MTrading Team • 2023-05-23

AUDUSD sellers need to break 0.6600 support to retake control

AUDUSD sellers need to break 0.6600 support to retake control

After repeated failures to cross the 100-DMA, the AUDUSD pair again attacks an 11-week-long ascending support line, around 0.6610 at the latest. That said, bearish MACD signals and a mostly steady RSI (14) line keep the Aussie pair sellers hopeful of breaking the stated key support. Even so, a confirmation from the 0.6600 round figure, becomes necessary for the bears to battle with the 61.8% Fibonacci retracement level of October 2022 to February 2023 upside, close to 0.6545. In a case where the quote remains bearish past 0.6545, the odds of witnessing a gradual fall towards 0.6380 and then to the yearly low of around 0.6170 can’t be ignored.

On the contrary, AUDUSD recovery remains unimpressive below the 100-DMA hurdle surrounding 0.6785. Adding strength to the stated resistance is the 38.2% Fibonacci retracement level. That said, the 0.6710 can guard the immediate recovery of the Aussie pair. It should be noted, however, that the quote’s successful break of 0.6785 resistance confluence can propel the pair towards 0.6850 and a late 2022 peak of near 0.6895, quickly followed by the 0.6900 round figure.

Overall, AUDUSD is likely to turn bearish after closely missing the negative weekly mark in the last.

May the trading luck be with you!