Detailed FX Market Outlook and Analysis

AUD/USD Daily Analysis 11-MAY-2023

AUD/USD Daily Analysis

The AUD/USD pair initially advanced to 0.6817 but quickly pulled back after failing to maintain levels above the resistance at 0.6804. Currently, the short-term bias remains neutral. A decisive breakthrough above the 0.6817 resistance would suggest the end of the overall decline from 0.7156 and indicate a bullish outlook for retesting that high. Conversely, if the minor support at 0.6716 is broken, it would imply rejection at 0.6804, keeping the short-term bearish sentiment intact and shifting the bias downwards towards a retest of the support zone at 0.6563/72. There is a possibility of resuming the overall decline from 0.7156.

Looking at the broader perspective, as long as the 61.8% retracement level of 0.6169 to 0.7156 at 0.6546 remains intact, the decline from 0.7156 is viewed as a correction in the context of the rally from the 2022 low of 0.6169. Another upward move is still anticipated, eventually surpassing 0.7156 at a later stage. However, if there is a sustained break of 0.6546, it would increase the likelihood of a resumption of the long-term downtrend, potentially reaching below the previous low of 0.6169.

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