AUD/USD Daily Analysis
The AUD/USD currency pair remains in a state of consolidation above the 0.6854 level, with a neutral intraday bias. While it’s possible that the correction from 0.7156 could continue to decrease, it’s expected to be contained by the 38.2% retracement level of 0.6779, resulting in a rebound. On the upside, a sustained break above the 4-hour 55 exponential moving average (currently at 0.6989) will lead to a retest of the 0.7156 high.
From a larger perspective, it’s believed that the corrective decline from the 2021 high of 0.8006 has come to an end with three downward waves reaching the 2022 low of 0.6169. The currency pair is expected to continue its upward movement, potentially reaching the 61.8% retracement level of 0.7304. A sustained break above this level will open the path for a retest of the 0.8006 high. This remains the favored scenario as long as the support level of 0.6721 holds.
