AUDUSD has displayed renewed strength, extending its recent gains. This analysis examines the technical situation and explores potential scenarios for the currency pair.
AUDUSD Stages Rally:
- Upside Move Gains Momentum: AUDUSD has built on its upward momentum, reaching a high of 0.6529. This move extends the rally that began at 0.6361.
Upside Potential and Targets:
- Further Rise Possible: The uptrend could continue in the coming days. The next potential target zone to watch is around the 0.6570 area.
- Ambitious Bullish Target: A decisive break above 0.6570 could indicate a stronger uptrend and aim for the 0.6630 area. This level previously acted as resistance.
Support Levels to Consider:
- 0.6482 Initial Support: The initial support level to monitor is at 0.6482.
- Assessing the Uptrend: A breakdown below 0.6482 would suggest a potential pullback within the uptrend. However, a more significant development would be a break below the key support level at 0.6440.
- 0.6440 Crucial Support: A decline below 0.6440 would signal a possible completion of the upside move from 0.6361. In this scenario, the pair could find support around 0.6400, with a further break targeting a retest of the initial low at 0.6360.
Overall Sentiment:
The technical outlook for AUDUSD has become uncertain in the short term. The recent rally suggests a potential trend reversal, but confirmation will depend on how the price behaves around the key support and resistance levels. Close monitoring of these levels is crucial to determine if the uptrend extends or if a correction unfolds.