AUD/USD outlook: Steep downtrend breaks below the base of thick daily cloud

Slobodan Drvenica Windsor Brokers

AUD/USD

Steep fall extends into the ninth consecutive day and accelerated on Thursday (down 0.85% in Asian / European session), hitting the lowest levels since early May and being on track for the biggest weekly loss since mid-June 2023.

Break of 0.6580 pivot (200DMA/ 50% retracement of 0.6362/0.6798) accelerated existing downtrend through next key supports at 0.6538/28 (base of thick daily cloud / Fibo 61.8%) which generated another strong bearish signal, exposing targets at 0.6500 (psychological) and 0.6465 (Fibo 76.4%).

Bears are expected to firmly hold grip in persisting favorable conditions for Aussie dollar, though partial profit-taking should be anticipated in coming sessions as daily studies are strongly oversold.

Daily cloud base reverted to solid barrier (0.6538) which should ideally cap, while extended upticks should stall under 0.6580 to keep larger bears in play.

Res: 0.6528; 0.6538; 0.6580; 0.6605.
Sup: 0.6500; 0.6465; 0.6389; 0.6362.

Interested in AUD/USD technicals? Check out the key levels

1. R3 0.6646
2. R2 0.6632
3. R1 0.6607
PP 0.6592
1. S1 0.6567
2. S2 0.6552
3. S3 0.6527

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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