The AUDUSD currency pair has been trading within a sideways range, oscillating between the levels of 0.6170 and 0.7157. This period of consolidation comes after a long-term downtrend from 0.8006. Traders are closely monitoring the price action within this range to determine the potential for further price movements in either direction.
As long as the price remains below the falling trend line on the weekly chart, the current sideways move can be interpreted as a consolidation phase for the long-term downtrend. This suggests that sellers still exert some control over the market, and a breakdown below the 0.6457 support level could trigger another downward move towards the lower end of the range at 0.6170. Traders who anticipate a continuation of the downtrend will be monitoring price action around this support level for potential selling opportunities.
However, it is important to note that the AUDUSD pair recently experienced a breakout above the 0.6800 resistance level. This bullish move has the potential to propel the price higher towards the upper end of the range at 0.7157. If the pair manages to sustain its upward momentum, traders expecting further appreciation may seek buying opportunities to ride the potential rally.
In summary, AUDUSD is currently trading within a sideways range between 0.6170 and 0.7157. The price action within this range should be seen as consolidation for the long-term downtrend. A breakdown below the 0.6457 support level could signal further downside potential, while a sustained breakout above the 0.6800 resistance level may lead to a potential rally towards the upper range boundary at 0.7157. Traders should remain vigilant, adapt to changing market conditions, and employ appropriate risk management strategies when trading AUDUSD.
