The AUDUSD currency pair is currently encountering a significant obstacle in the form of a resistance level represented by a falling trend line on the 4-hour chart. The pair’s recent rebound from 0.6662 is being viewed as a consolidation phase within the broader downtrend that originated from 0.6899. Traders are closely monitoring the trend line resistance as it could potentially influence the pair’s future price action.
While the consolidation phase is underway, market participants are contemplating the likelihood of further decline towards the 0.6570 area. This projection is based on the assumption that the trend line resistance will hold, reaffirming the prevailing downtrend. Traders should exercise caution and monitor price movements for any signs of a breakdown below the recent support level.
However, in the event of a convincing breakout above the trend line resistance, it would suggest that the downward move has already exhausted itself at 0.6662. Should such a breakout occur, the next target for the pair would be around 0.6800, followed by a potential retest of the previous high at 0.6899.
To summarize, the AUDUSD currency pair is currently facing resistance from a falling trend line on the 4-hour chart. The ongoing rebound is seen as a consolidation phase within the broader downtrend, with a potential target at 0.6570 if the trend line resistance holds. However, a breakout above the trend line would shift the outlook and open the door for further gains towards 0.6800 and 0.6899. Traders should carefully analyze price movements and adjust their strategies accordingly to navigate the evolving dynamics of AUDUSD.
