The prevailing analysis suggests a favorable outlook for a further rally in AUD/USD, contingent upon the resilience of the 0.6689 support. The ascent from 0.6269 establishes an initial target at 0.6894 resistance, with a sustained breakthrough directing focus towards the subsequent level at 0.7156. However, a breach of 0.6689 would signal a short-term peak, prompting a shift in bias towards a deeper pullback.
There is a lack of confirmation regarding the completion of the downtrend from the high of 0.8006 in 2021. The price actions originating from the 2022 low of 0.6169 could potentially be construed as a medium-term corrective pattern. The current rise from 0.6269 is interpreted as the third leg within this pattern. Until further developments, the market is expected to engage in range trading oscillating between 0.6169 and 0.7156, representing the 2023 high.
Analysis Summary
The AUD/USD analysis maintains a positive stance for a further rally hinging on the resilience of 0.6689 support. The ascent from 0.6269 targets 0.6894 and potentially 0.7156. A breach of 0.6689 signals a short-term peak. In the broader perspective, uncertainty prevails as the downtrend from 0.8006 may not be concluded, and a range between 0.6169 and 0.7156 is anticipated.
Key Points
- Further rally favored if 0.6689 support holds; target at 0.6894 and 0.7156.
- A break of 0.6689 indicates a short-term peak, prompting a downside bias.
- The broader picture lacks confirmation of downtrend completion; range trading is expected between 0.6169 and 0.7156.
