The AUDUSD currency pair has been experiencing a period of sideways movement, trading within a range between 0.6170 and 0.7157. This consolidation phase suggests a pause in the long-term downtrend that originated from 0.8006. However, it is important to note that as long as the price remains below the falling trend line on the weekly chart, the current sideways move could be considered as consolidation within the context of the broader downtrend.
Traders should closely monitor the support level at 0.6457. A breakdown below this level could indicate a resumption of the downtrend, potentially leading to another decline towards the lower boundary of the trading range at 0.6170. This would be a bearish signal for the AUDUSD pair, and traders with a pessimistic outlook would look for opportunities to capitalize on further downward movement.
On the other hand, the near-term resistance at 0.6899 should be closely watched. A break above this level could trigger another upward move, potentially towards the falling trend line. Such a breakout would suggest a temporary shift in momentum and might provide opportunities for bullish traders. However, it is crucial to consider the overall downtrend and the significance of the falling trend line as potential resistance.
To summarize, the AUDUSD pair has been trading sideways within a range, indicating a consolidation phase in the context of the long-term downtrend. A breakdown below the support level at 0.6457 could trigger another fall towards 0.6170, while a break above the resistance at 0.6899 could lead to a rise towards the falling trend line. Traders should remain vigilant and adapt their strategies to changing market conditions and price dynamics.
