AUD/USD Price Analysis: 0.64 has emerged as strong support

AUD/USD has breached key ascending trendline support but holds above 0.64.
That level has restricted losses for two straight trading days.

Omkar Godbole FXStreet Contributor

The growth-linked Aussie dollar is flashing green at press time with the S&P 500 futures reporting a 0.70% gain.

The AUD/USD pair is currently trading 0.6428, representing a 0.23% gain on the day, having found bids near 0.6410 during the early Asian trading hours.

On Friday, the pair breached the support of the trendline connecting April 21 and May 7 lows, validating the recent repeated failure at the descending 100-day average and boosting the case for deeper declines. The sellers, however, failed to penetrate the psychological level of 0.64 - that level restricted losses in the Aussie dollar on Thursday.

Clearly, 0.64 is now the level to beat for the sellers. Acceptance under that newfound support would reinforce the downside break of the rising trendline and open the doors to 0.6253 (April 21 low). On the higher side, a close above the 100-day average at 0.6510 is needed to restore the immediate bullish view.

Daily chart

Trend: Bearish below 0.64

Technical levels

1. R3 0.6531
2. R2 0.6503
3. R1 0.6458
PP 0.643
1. S1 0.6385
2. S2 0.6357
3. S3 0.6312

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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